The Oil And Natural Gas Resources

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“In North Dakota, the nation’s second largest petroleum producing state after Texas, the number of rigs has dropped to 65 from some 191 last year. More than 10,000 jobs have been lost. And unemployment insurance benefits have risen by a reported 115 percent” (Bobb). The Bakken Formation is the oil and natural gas resource in North Dakota. The Bakken Oil Field in North Dakota is young, at only ten to fifteen years old. It has experienced tremendous growth and success, but is now in its first recession or bust cycle. The drop in oil prices on a worldwide level has forced oil companies to stop drilling. Prices of Bakken Oil topped out over one hundred dollars per barrel, and now are in the teens. Because of the drop, it is not profitable to drill new oil wells. The result of fluctuating prices is a continuous boom and bust cycle in the oil industry. When oil prices drop, most people think of the positive sides and personal benefits of inexpensive fuel. However, many people do not take into consideration the negatives. People who rely on oil field production, as well as supporting industries are adversely affected through job layoffs and company bankruptcy (Bringe). As a result of lower oil and gas prices in the Bakken Oil Field, North Dakota has experienced overbuilt housing, a financial crisis, and resource company bankruptcy. One effect of low oil prices in North Dakota is overbuilt housing. Developers and towns accurately predicted a boom, so many houses and apartments
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