The energy industry made great strides in 2013, especially in towns with rock formations believed to contain oil and natural gas. Utility companies are sending workers to oil boom towns to search for natural resources, causing some of the towns to experience unprecedented growth. One reporter calls it a "modern-day gold rush," and many workers have left their previous jobs to search for prosperity in other states. In addition to the growth in oil boom towns, towns near natural gas sources are also experiencing reduced unemployment rates and tighter housing markets.
In just one year, the population of Williston, North Dakota, has grown 9.3 percent. The town is home to the Bakken formation, which may contain millions of barrels of oil. Tom Rolfstad, the executive director of the city's economic development department, expects the town to double in size within the next three years. The biggest problem in this oil boom town right now is a severe housing shortage, which is forcing some workers to sleep in parking lots at job sites. Perry Chiaramonte of Fox News says Williston is "ground zero" for the nation's energy renaissance. As a result, the town's unemployment rate is just 1 percent.
North Dakota is home to more than one oil boom town. Dickinson is also located along the edge of the Bakken formation, making it a great place to live if you are looking for new opportunities in the energy industry. The population of this town grew 6.5 percent over the last year, causing rents to double and prompting construction workers to continue building residential structures during the winter. Shawn Kessel, the city administrator, said the number of building permits granted for single-family homes increased more than 400 percent during 2012.
Oil boom towns are not the only areas getting a lot of attention from utility experts. The natural gas industry is transforming several towns near the Marcellus shale formation, which extends along the Appalachian Basin. Its location is ideal for companies supplying East Coast regions with energy, giving residents of Pennsylvania, West Virginia, New York, Maryland, and Ohio opportunities to increase their wealth. In Lawrenceville, Pennsylvania, some homeowners are receiving rental fees and royalty payments for allowing the natural gas industry to take gas from the shale on their land. One couple, Jeff and Pamela Barnes, has gone from barely making ends meet to putting $50,000 in an investment portfolio and buying new equipment for their farm.
The availability of oil and natural gas in American towns is great for the economy. People in these towns have more employment opportunities available than they did in the past, and these jobs tend to pay better than jobs in other industries. The growth of oil boom towns and shale towns is also a great thing for construction and real estate professionals. These professionals will have the opportunity to make more money as they attempt to ease the housing shortage related to the recent oil and natural gas booms.
(Photo courtesy of freedigitalphotos.net)
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