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Boomtowners
"Boomtowners" plunges into a modern-day "gold rush" that's attracting thousands of people from all over the country to the Bakken, a region of North Dakota. An oil boom has turned the area into the epicenter of a white-hot industrial revolution, but a rise in jobs has also led to a surge in population and living costs. Experience this phenomenon first-hand through the eyes of newcomers and longtime residents trying to make a living there in this groundbreaking new docu-series about tapping into the American dream.
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Episode Guide
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Boom or Bust
Haley and Larysa sell puppies, Liberty Oil faces a crisis, and Sean makes a life-changing decision.
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Shootin' Blanks
The changes that come to boomtowns are not always for the better, as the residents of the Bakken are about to discover.
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Here Comes the Chaos
A date gone wrong, a rough visit from in-laws, and bad chemistry in the oilfields lead to big drama in the Bakken.
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Closed Wednesdays
Witness a work stoppage, Haley's risky purchase, Ben's fight for childcare, and Jennifer's wedding in danger.
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The Bakken Drag Race
Frustrations mount as faulty equipment perplexes Justin, debt plagues Haley and Larysa, and a decent home evades Tony.
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Wake Up the Devil
See how the Bakken oil boom has led to a rise in costs, crimes, and pressures for the area's newcomers and locals.
Behind the Boom
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American Boomtowns: Then and Now
The current Bakken oil boom is impressive, but Williston, ND, isn't the first town in American history to experience phenomenal growth based on an emerging industry. As the United States grew, exciting discoveries of valuable natural resources inspired enterprising fortune-seekers to stake their claims and chase their dreams in towns that seemed to spring up overnight. Some of these boomtowns evolved and prospered beyond their boom years, while others declined and quietly receded from the spotlight.
Chicago, IL: One of the most enduring boomtowns in U.S. history, Chicago's long-term success was built on a foundation of shipping. An extensive canal project brought thousands of workers and financial speculators into the city in the 1830s and 1840s, but the railroad soon overshadowed it. Dozens of interstate railroad lines connected in Chicago, making it a convenient shipping hub for goods and materials to the eastern U.S. and Europe. The constant influx of people and supplies helped Chicago steadily grow into the prosperous city it is today.
Wisdom for Williston: Diversification, hard work, and investments in a robust infrastructure may eventually transform a boomtown into a thriving, permanent metropolis.
San Francisco, CA: The discovery of gold boosted San Francisco's population from about 800 settlers in 1848 to more than 79,000 in 1851. The sudden population explosion, coupled with the amount of gold flowing through the region, wreaked havoc on the local economy. Real estate prices skyrocketed, gambling was rampant, and even basic goods fetched premium prices. Although the financial panic of 1857 put a damper on the town's prosperity, the discovery of silver in Nevada in 1859 helped San Francisco reinvent itself as a modern cosmopolitan city favored by the wealthy elite. Today, an impressive technology boom draws top innovators from all over the world to a city filled with programmers instead of prospectors.
Wisdom for Williston: Even when a boom eventually ends, employing the same sort of innovation and tenacity that led to the boom can bring back prosperity in a different form.
Oil City, PA: Aptly named, Oil City became a bustling hub of oil activity after the Drake Well, the world's first commercial oil well, was drilled nearby in 1859. During the city's heyday between 1860 and 1870, millions of barrels of crude oil shipped through Oil City on their way to Pittsburgh and other locations. Overcrowding and sanitation became problematic as workers packed into the small city, but its boom proved to be short-lived as oil production ramped up across the country.
Wisdom for Williston: Investing in housing and amenities that make the area more worker-friendly may help a boomtown become a long-term home instead of a short-term detour.
Tombstone, AZ: When the silver rush brought approximately 7,000 people to Tombstone in the early 1880s, the small town struggled to contain the rowdy frontiersmen who favored the pursuit of wealth over the rule of law. Legendary Western figures including Wyatt Earp, "Doc" Holliday, and Johnny Ringo blazed their way into American history with their fabled gun battle at the O.K. Corral. The mythology of Tombstone long outlived its boom, which ground to a halt in 1911 due in part to labor strikes, flooding in the mines, and depressed silver prices.
Wisdom for Williston: Make extra efforts to ensure the safety and security of the town. Crowded conditions filled with unfamiliar people can lead to trouble for everyone.
Beaumont, TX: Spurred by the discovery of the nearby Spindletop oil field, the first major oil field in Texas, Beaumont saw the birth of a crucial Texan industry. Petroleum giants Texaco, Gulf Oil, and Exxon all formed in Beaumont during its first boom year. Since then, Beaumont has enjoyed the benefits of multiple oil booms thanks to advances in drilling techniques that provide access to deeper deposits.
Wisdom for Williston: If the oil stops flowing, develop new extraction technologies. Different approaches may yield success and lead to a new wave of prosperity.
Williston, ND, is still writing its history in oil, sweat, and determination. Only time will reveal whether it can sustain this momentum. Will it prosper or fade into history once the oil wells run dry?
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Fracking 101
The U.S. Geological Survey estimates that the Bakken Formation holds billions of barrels of undiscovered oil, which has driven rapid industrial development in North Dakota since 2007. Energy companies use a variety of techniques to collect fuel from beneath the Earth's surface, but hydraulic fracturing, more commonly known as "fracking," is the extraction method that's made the current oil boom in the Bakken possible. But what exactly is fracking? Below, we'll walk you through the process, step-by-step.
- An on-site blending unit mixes water, sand, and chemicals to create hydraulic fracturing fluid. Many drilling companies use proprietary fluid formulas and choose not to disclose the ingredients of their fracking fluids. In 2012, about four percent of North Dakota's ground and surface water use was attributed to fracking activities.
- A pilot hole is drilled vertically about 6,000-10,000 feet deep, then drilled horizontally and filled with cement and steel casing. Additional steel reinforcements are installed approximately 500 feet deep into the vertical casing to protect the groundwater layer.
- A specialized perforating gun is guided to the end of the horizontal casing. Explosive charges shot from the gun create perforations in the casing and cause the surrounding shale to fracture.
- Multiple pump trucks force hydraulic fracturing fluid down through the vertical casing and out through the perforations in the casing at incredibly high pressures, creating fissures in the tough shale rock.
- The sand within the fluid props the fissures open, allowing the oil to escape from the shale rock into the casing.
- The oil and the water are pumped out of the well to the surface, where they're separated by equipment on the surface. The wastewater is stored until it can be treated at a processing plant, and the oil is pumped into trucks, where it's sent for later refinement. After the oil from a perforation has been extracted, a plug is installed in the casing to seal the used section. The perforating gun may be redeployed multiple times in the same casing to blast new fractures along the length of the well to collect more oil.
- The oil is collected and shipped to its destination.
Years of debate have surrounded the process of hydraulic fracking. Energy companies insist that it's safe, particularly at the depths of operation in the Bakken. But among environmental organizations, independent researchers, and local residents who live in towns affected by fracking, the process remains controversial, due to its potentially harmful environmental impacts. These include the volume of water the process requires, the use of dangerous chemicals, and the potential for groundwater contamination. Although hydraulic fracturing techniques have evolved over decades, these environmental concerns make some question its long-term viability, an issue that's still contested today.
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What Your Money Buys In a Boomtown
When people talk about the oil boom in the Bakken, discussions inevitably turn to the abundance of jobs and the potential to earn a six-figure income without a college degree. Now, job-seekers are flocking to Williston, ND, and the surrounding areas in search of these high wages often available to oil and gas industry workers, and the flood of new residents flush with cash is transforming the local economy. While some hourly wages outside these industries may be higher in the Bakken than in other parts of the country, many common expenses are scaled up alongside them.
One-bedroom apartment, $2,400/month: Like many boomtowns, Williston is facing a housing shortage caused by thousands of workers seeking shelter in the (formerly) small town. In roughly three years, the town population tripled, and there are a finite number of rooms available. That's why a single-bedroom apartment with a modest 700 square feet rents for about $2,400 per month in Williston, trumping prices for comparable housing in notoriously expensive towns, like New York City and Los Angeles.
Loaf of white bread, $5: When you're working at a drill site in the middle of the desert, you may not have the luxury of grabbing a quick lunch at the nearest restaurant. Packing a lunch is essential. If you want to bring a sandwich, you'll need to be prepared to spend as much as $5 for a loaf of white bread, a price considerably higher than the national average of $1.48.
Pair of blue jeans, $95: A pair of designer jeans can cost hundreds of dollars, but the national average price for a typical pair of denim jeans is about $50. In the Bakken, a name-brand pair of rugged work jeans can sell for about $95. At that price, it's probably best to ignore the occasional oil stain on the cuffs.Gallon of whole milk, $7: If you'd like to enjoy a cold glass of whole milk in the Bakken, you'll need to spend about $7 per gallon. Considering that the average price provided by the Bureau of Labor Statistics is $3.76 per gallon, you'll probably want to savor every last drop.
Retail clerk wage, $17/hour: Because oil and gas jobs pay higher-than-average wages, many businesses must offer retail clerks in the Williston area far more than the state minimum hourly rate of $7.25. Even part-time workers at large discount stores can command a starting hourly wage of $17.
As this small sampling of the Bakken economy suggests, relocating to chase dreams of oil-fueled wealth may not be quite as profitable as the average worker hopes. Prices for goods and services vary by location across the country, but the inflated prices in Williston have become a fact of life for recent arrivals and lifelong residents alike.
*Based on research conducted March 2015
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When the Town Goes Boom
For those living in a small town, the excitement that accompanies a sudden boom can be contagious. But it's easy to forget that sudden, rapid industrial growth is often accompanied by a considerable amount of stress on the people and the infrastructure of a boomtown. Williston, ND, has already witnessed the boom/bust cycle firsthand; in the 1970s and '80s, the town experienced a significant oil boom, but the local economy crashed when falling oil prices prompted energy companies to leave the region, taking their jobs and money with them. This time around, the town's more cautious approach to growth is evident in how it's managing increased demands on its resources and public services.
Overcrowded schools
The Issue: While there are plenty of single workers arriving in the Bakken, others have brought along families with school-age children. The Williston public school system recorded a 22 percent increase in its student population in 2012, and while the district does its best to keep up with the fluctuating enrollment, space and staffing shortages are annual problems.
The Response: In 2013, Williston rented 32 modular classrooms, reopened a vacant elementary school, and recruited 39 teachers from across the country in an effort to keep class sizes to 25 students or fewer.
Understaffed Police
The Issue: In 2014, the town saw a 125 percent increase in felonies. Before the boom, the Williston police force of 26 sworn officers protected and served at a rate of about one officer per 692 people, but hiring enough new officers to keep pace with the town's growth has been challenging. The population surge brought with it increases in traffic accidents, aggravated assaults, and other crimes.
The Response: Despite facing stiff hiring competition from oil companies, the Williston police force managed to hire 16 new officers for a total of 42 sworn officers serving about 33,000 people. Now, the town has one officer per 786 people.
High Water Demand
The Issue: Built in 1960 to service a significantly smaller population, the Williston Water Treatment Plant has struggled to meet increased water demands from fracking, construction, and the swelling regional population. North Dakota's total industrial water use related to fracking increased by an average of 43 percent between 2008-2013, and it's estimated that 1,600 new wells each year will require as much as 18 million gallons of frack water per day. In addition to the increased industrial water needs, Williston's population has more than doubled since the 2010 census, and that means the water infrastructure has to service many more thirsty people.
The Response: To bolster the town's water supply, Williston now brings in water via pipeline from the Missouri River, thanks to its participation in the Western Area Water Supply Project (WAWSP). The aging Williston Water Treatment Plant underwent a major upgrade to increase its service capacity, making it capable of processing several million additional gallons of potable water per day. The project currently provides plenty of water for more than 70,000 people, including Williston and the project's five-county service area. When completed, WAWSP is expected to provide drinking water to 160,000 people by 2038.
Poor Road Conditions
The Issue: Delivering the materials used by each Bakken oil rig requires an estimated 2,000 trips made by heavy trucks, and the roads in and surrounding Williston are subject to excessive wear and tear from the constant truck traffic. One estimate predicts that fixing North Dakota's damaged roadways could cost in excess of $900 million over 20 years.
The Response: To help alleviate the disruptive traffic in town, work began in 2014 on the Williston Truck Reliever Route, a $162 million, four-lane bypass that will help keep truck traffic out of the downtown area.
Housing Shortage
The Issue: The end of Williston's previous boom in the 1980s left the town struggling to absorb $28 million spent on infrastructure intended to service new housing construction that never materialized. It took the town approximately 15 years to pay off the financing for the project, so the town government is taking a more measured approach with the current boom. While the town is trying to minimize its risk related to new housing construction, its more cautious process means it takes longer to build desperately needed living quarters for the influx of oil workers. The housing shortage has made real estate prices in Williston among the highest in the country.
The Response: The town now regulates temporary housing for workers, including the sprawling "man camps" that offer basic accommodations for oil workers. In 2014, Williston issued roughly $500 million in building permits, some of which are to build high-quality, permanent housing, and developers are now required to share financial responsibility for projects that fail.
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American history is littered with tales of once-prosperous boomtowns that enjoyed brief success before going bust; what remains to be seen is whether Williston learned enough from its own history to persevere and thrive amid a new oil renaissance. With careful management, the town may be able to avoid repeating its own history.
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Bios
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HON. GREG MOHRRichland County Judge
"We've got a lot of really good people who have made some dumb mistakes, but they have the capability to pull themselves up and make it work."
Richland County Judge Greg Mohr maintains a grueling schedule, thanks in part to the current Bakken oil boom. His courtroom hosts a steady stream of oil workers and local residents who face charges such as driving under the influence, writing bad checks, and fighting. Arrests in his hometown of Sidney, MT, have increased by 165% over three years, and the pace in the Richland County courtroom has never been more hectic. "In February, we had 421 cases, and it was a slow month," says Mohr. "Our caseload depends on the month, the weather, even the phase of the moon." The stress of overcrowding also plays a part in the Bakken crime rate, and Mohr offers simple advice to inbound job-seekers: "This is the land of plenty, but be prepared and arrange for a place to live. We have a lot of people with $100,000 incomes who are homeless."
Although Judge Mohr has been on the bench for 29 years, his personal experience as an oil driller during the area's oil boom in the 1970s helps him understand and help the people he meets in his courtroom. "When you give them opportunities to pull themselves together and you see them succeed, that makes it all worthwhile," says Mohr. His reputation as a tough-but-fair judge seems fitting based on the advice he frequently offers to defendants: "You don't want some guy wearing a black dress controlling your life. You control it, so make decisions that take me out of the equation." If the Bakken boom continues at its current rate of growth, Judge Mohr may have an overabundance of cases for years to come.