Tag Archives: unemployment in Dickinson North Dakota

How Dickinson Works, And What Is Going To Happen, Part II

Although this blog post is a continuation from Part I, here is where I begin explaining the basis for understanding how Dickinson, North Dakota works.

If anyone wants or expects to be successful in Dickinson, they must first understand how Dickinson works.  I am going to start off with the simplest, most important facts first.

Foremost, Dickinson is the regional center for shopping, supplies, and services for the geographical areas consisting of Medora, Belfield, South Heart, New Hradec, Manning, Killdeer, Halliday, Dodge, Gladstone, Taylor, Richardton, Lefor, Regent, and New England.  No matter what else happens, Dickinson being the supply center for these aforementioned towns is not likely to change for a long time.  The next largest city, Bismarck, the state capital, is 100 miles to the east.  Here is a map of the Dickinson area
https://images.app.goo.gl/su98oCKBHxrKd3pNA

Geographically, there is nothing special or unique about Dickinson.  It sits on a rolling, nearly tree-less prairie, just like all of the other towns in this area.  Dickinson got its start the same way as all of the other towns in western North Dakota, it was settled by land-grant homesteaders after the passage of the 1862 Homestead Act.  The homesteaders in the Dickinson area were primarily immigrants from Ukraine, Germany, and Scandinavia.

The fourteen towns that I mentioned earlier, Medora, Belfield, South Heart, New Hradec, Manning, Killdeer, Halliday, Dodge, Gladstone, Taylor, Richardton, Lefor, Regent, and New England, by the early 1900s each of these towns had their own general store, school house, and churches.  Before the invention and widespread use of the automobile, it took much more time to travel, it was done by horse, buggy, wagon, or on foot.  Even small communities had to have some local businesses, a school house, and churches.

Some of the factors or circumstances that caused Dickinson to grow more than the surrounding towns were:  the Northern Pacific railroad was built through Dickinson in the 1880s;  the 40-room St. Josephs Hospital was built in Dickinson in 1911;  Dickinson  State University was founded in 1918;  the Dickinson Municipal Airport began airline service in 1959;  Interstate 94 was completed through Dickinson in the 1960s.

As Dickinson grew, gained more businesses, provided more services, and its infrastructure grew, the surrounding towns began to rely more and more on Dickinson for supplies and services.  Unfortunately, as time went on, the surrounding towns began to lose many of their own local businesses and services, because of Dickinson.

For instance, the towns of Medora, Belfield, South Heart, New Hradec, Manning, Halliday, Dodge, Gladstone, Lefor, Regent, and New England no longer have a grocery store, family clothing store, appliance store, drug store, pharmacy, clinic, or doctor.  Most of the surrounding towns do not have an automobile dealer, an automobile repair shop, a tire dealer, or barber shop.

The following are the essential businesses in Dickinson, the type of businesses that this area can not go without:

Four grocery stores, five hardware stores, two farm/ranch supply stores, three building supply stores, five tire stores, nine automobile dealers, nine auto repair shops, four automobile tow companies, four pharmacies, two funeral homes, five liquor stores, and Walmart.

The following businesses in Dickinson are almost essential to this area:

Three truck stops, two tractor truck repair/parts centers, several heavy equipment/farm equipment dealer/repair/parts centers, three heavy equipment rental yards, several industrial/electrical/welding supply warehouses, three utility/livestock trailer dealer/repair centers, ten fast food restaurants, half a dozen furniture stores, and eleven banks.

These aforementioned businesses in Dickinson are either essential or very nearly essential to this area.  Because of these businesses, this is what brings people to Dickinson, brings money to Dickinson, and provides employment for people in Dickinson.  Without these businesses, there would be no people coming to Dickinson, no money coming into Dickinson, no employment in Dickinson, and very few people able to live in Dickinson.

When I start to list the essential services in Dickinson below, such as the schools and hospitals, the reader must remember, if it were not for the large number of essential businesses in Dickinson that bring people to Dickinson, there would not be enough people living in Dickinson to have schools and hospitals.  The services are here, because of the number of people here, and the number of people here, are the result of the large number of essential businesses in Dickinson.

The following are the essential services in Dickinson, the services that this area can not go without:

Two public utility companies, two public phone service companies, one ambulance service, two medium size hospitals, half a dozen medical clinics, half a dozen dentists, several optometrists, police department, sheriff department, regional jail, several fire stations, highway patrol office, city maintenance department, department of transportation office, driver’s license office, regional court house, one post office, two high schools, middle school, several elementary schools, and several veterinarians.

The following services in Dickinson are very nearly essential to this area:

One regional airport with private airplane and commercial airline service, one bus service, several car rental services, half a dozen taxi services, a dozen motels/hotels, many beauticians and barbers, two dozen attorneys, a dozen CPAs, many residential and commercial contractors in plumbing, electrical, HVAC, roofing, home construction, concrete, and excavation.

I spent some time trying to specifically identify the essential businesses and essential services in Dickinson, to make everyone completely aware, that many of the other types of businesses and services in Dickinson are just supplemental, they are not critical.

Some of the supplemental, non-critical types of businesses and services in Dickinson are:

Traditional restaurants, pizza delivery, ice cream parlors, coffee shops, bars, sports bars, bicycle shops, guns stores, sporting goods stores, movie theaters, motorcycle dealers, snow mobile dealers, UTV dealers, travel trailer dealers, tattoo parlors, vehicle accessory dealers, jewelry stores, dance studios, fitness centers, tanning salons, pawn shops, daycare centers, insurance agencies, real estate agencies.

Lastly, I need to name some of the large companies that operate in Dickinson, that have not been covered yet because they are not an essential business or service in Dickinson, but they do employ many people in Dickinson.  These are companies that perform work or sell products outside of the Dickinson area:

Halliburton, Schlumberger, BJ Services, Marathon Oil, Continental Resources, Philips Conoco, Whiting Petroleum, Key Energy, MBI, Nuverra, Lufkin, Fisher Industries, General Steel, Medora Corporation, Steffes, TMI cabinets, Killdeer Mountain Manufacturing, Martin Construction, Northern Improvement, Baranko Brothers, Tooz Construction, and Winn Construction.

There are several reasons why I separated the businesses and services in Dickinson into separate categories. One reason was to provide clarity on what types of businesses and services there are in Dickinson; Second, I wanted to differentiate between essential/non-essential businesses and services; and Third, I wanted to be able to show how the end of the oil boom in Dickinson is going to affect businesses, services, and employment in Dickinson based on the role of the business or service in the economy.

The most recent oil boom in North Dakota lasted from 2007 through 2015.  Due to the price of oil dropping from over $100 per barrel to less than $50 per barrel in 2015, the oil companies decreased drilling operations.

The number of operating oil drill rigs in North Dakota went from over 200 to less than 50 currently.  Less drilling meant less well sites being developed, less drill rigs operating, less drill rigs being transported, less hydraulic fracturing, less sand and water hauling, less work-over rig completions, less pump jacks being installed, less cranes being rented, less tractor truck and hot shot transportation of material and equipment to the oil field.

The number of workers employed in the oil field decreased.  Many of the oil field workers who lost their job left the Dickinson area.  Consequently, there were fewer purchases and less money spent at local businesses such as auto dealers, auto repair shops, tire stores, furniture stores, grocery stores, hardware stores, restaurants, bars, sporting goods stores, movie theaters, etcetera.

Many workers leaving Dickinson caused there to be a decreased demand for housing.  The number of new and existing homes and apartments available for occupancy, exceeded the demand.  This was a signal that new homes, new apartments, new businesses, new shopping centers, new roads, and new infrastructure might not need to be constructed.

The residential and commercial construction industries slowed down in the Dickinson area.  This meant even more unemployed workers leaving the Dickinson area.  Less heavy equipment was being purchased, less heavy equipment was being rented, less building supplies were being purchased, local businesses had fewer customers and fewer purchases, less services were being used, more homes and apartments became vacated.

Near the beginning of March 2020, the Organization of Petroleum Exporting Countries, OPEC, and Russia did not agree to reduce the amount of oil that they were producing.  This caused an oversupply of oil on the World market, and the price of oil in the U.S. dropped to $31 per barrel after the first week of March.  This oil price drop is predicted to start a whole new oil industry slow down, with even less oil well sites being developed and drilled.

The oil field work in Dickinson is expected to decrease even further now, with more oil field workers losing their jobs and leaving Dickinson.  There will be even fewer customers and less money spent at local businesses and services in Dickinson.

The essential businesses in Dickinson, such as grocery stores, hardware stores, automobile dealers, and tire stores, they will have fewer customers, they will be less busy, and some of these businesses will reduce their number of employees.

The nearly essential business such as heavy equipment dealers, heavy equipment repair, trailer dealers, furniture stores, and banks will reduce their number of employees.

The essential service providers such as medical clinics and schools will eventually reduce some of their staff as there are fewer people in Dickinson.

The nearly essential service providers such as beauticians, attorneys, plumbers, electricians, and HVAC will have less work.

Supplemental non-critical businesses and services in Dickinson that will have less work, and require fewer workers are restaurants, coffee shops, tattoo parlors, recreational vehicle dealers, daycare centers, insurance agencies, and real estate agencies.

Some of the large employers in Dickinson who will have less work, and could reduce their workforce are:  Halliburton, Schlumberger, BJ Services, Marathon Oil, Continental Resources, Conoco Philips, Whiting Petroleum, MBI, Nuverra, Lufkin, Steffes, Martin Construction, Northern Improvement, Baranko Brothers, Tooz Construction, and Winn Construction.

Once essential businesses, essential service providers, supplemental business and services, and some of the largest employers in Dickinson have let some of their workers go, these unemployed workers and their families may have to leave the Dickinson area.  This in turn will make Dickinson even smaller, with even less consumers.

Dickinson will continue to be the regional supplier of goods and services for this area, because there are fourteen smaller towns surrounding Dickinson that rely on it.  I estimate that the population of Dickinson right now is approximately 24,000 people.  By the year 2022, I believe that the population of Dickinson will have decreased to about 21,000 people.

The reason for the expected decline in population, is because of the reduced work in the oil field.  Unemployed oil field workers will leave Dickinson, local businesses and services will become less busy, these local businesses and services will lay off some of their workers.  These unemployed workers and their families will leave Dickinson.

I Want To Beat The Chamber of Commerce In Dickinson, North Dakota

I want to beat the Chamber of Commerce in Dickinson, North Dakota.  I want to get to you, before they do.  I want to tell you the truth, rather than have you listen to lies and bullshit.

The individuals in the Dickinson Chamber of Commerce may not be bad people, but they have a job to do, and that job is to lie to you about Dickinson.

When I first wrote this blog post in November of 2015, the housing prices in Dickinson were very, very high.  Extremely high.  This was the result of greed, lack of human decency, and stupidity.  There was this lie going around that everybody in the oil field was making $100,000 per year.  In the five years that I have lived in Dickinson, I have only ever met three people who made over $100,000 per year in the oil field.

The Oil Boom was over in western North Dakota by the end of 2015, due to the price of oil falling from over $100 per barrel down to $40 per barrel.  Many oil field jobs went away, and many out of state workers returned to the states where they came from.  Once the apartments, manufactured home parks, and trailer parks in Dickinson became less than half occupied, the rents throughout Dickinson dropped greatly.

During the Oil Boom, the people in Dickinson were not friendly, not helpful, and not cooperative.  Now that the Oil Boom is over, the people in Dickinson are even meaner, in part due to increased competition for fewer jobs, and also because they want people to leave Dickinson.

The people in Dickinson dislike people who are from someplace else, and they also dislike each other.  Anything you say to people in Dickinson, will probably make them dislike you more.  If you arrive in Dickinson now, you are better off staying away from people.  Remain in your hotel, or your home, there isn’t anything to do or anywhere to go anyway, and you will likely be followed and stopped by the Dickinson Police.

There is a shortage of women in Dickinson, and a lack of attractive women.  The ratio of men to women in Dickinson is probably 3:1.  The Dickinson Police Department try as hard as they can to not allow prostitution in Dickinson, though it is needed.  The Dickinson Police create fake advertisement for women wanting to have sex, and then arrest people when they show up.

You can not safely go out to bars or restaurants in Dickinson at night, because the Dickinson Police try as hard as they can to arrest people for DUI.  In Dickinson, the Police are so eager to arrest people for DUI or other charges, that they will follow you and stop you for any reason that they can think of.  The Police try to encourage people to leave Dickinson.

In Dickinson, all of the restaurants have employees and servers that don’t like their jobs.  All of the restaurant employees think that everyone else is making over $100,000 per year, and they aren’t, and they are mad about it.  The servers are disappointed and can’t understand why people don’t spend $50 per meal and leave them a $20 tip, like they all heard about.  How are they ever going to make $300 a night at Applebees like they planned?

There is not a lot to do in Dickinson.  It is cold and grey from about October through April, at least seven months of cold weather.

The oil field work has been reduced by about 80% over the past several years.  Most of the oil field workers who lost their jobs went back to the states where they came from because housing prices were so high here, the people are unfriendly, there is a shortage of women, you can’t go out to bars or restaurants at night, the restaurants have terrible service, there is not a lot to do, the Police encourage people to leave Dickinson, and it is cold for at least seven months of the year.

The people in Dickinson, and the employers in Dickinson, hate people with an education.  The employers in Dickinson would much rather hire someone with several felony convictions, than someone with a college degree.  In Dickinson, your supervisors and co-workers will be people convicted of robbery, theft, assault, and drug charges.  Perform a Google search and look up your company owners, managers, and personnel on www.ndcourts.gov/publicsearch/default.html before you accept a job with a company in Dickinson.

What do I want?  I want the truth to be known.  I had thought that Dickinson could change, but once the Oil Boom was over, the local people in Dickinson became ever meaner.  I had not realized that the local people in Dickinson were on their best behavior during the Oil Boom.  All I can do now is warn people what Dickinson is like.

Oil Field Speculation in Dickinson, Part II

I hope that you have read “Oil Field Speculation in Dickinson, Part I”, but it is not absolutely necessary to be able to follow along with this “Oil Field Speculation in Dickinson, Part II”.

In 2011, I met here in Dickinson a truck driver who had grown up in Gillette, Wyoming.  I will use the initials “SA” for this individual to protect his identity.  When “SA” was a kid, there was an oil and gas drilling boom in Gillette, Wyoming.  He said he remembered new apartment buildings being built and new manufactured homes being brought in.  He remembered people buying new trucks, motorcycles, boat, and RVs.  “SA” remembered his father standing around with other people, and they were all agreeing,”…this economy here in Gillette is so big now, it can’t fail, it’s big enough now to go on its own, it doesn’t depend on those oil field jobs, we got so many people living here now…”.  Within a few years, the trucks, motorcycles, boats, and RVs were being repossessed.  Whole apartment buildings became vacant or were never completed.  The oil and gas drilling had stopped.

Here in Dickinson, there appears to be the belief that there are so many people in Dickinson, that the economy is big enough to not be dependent on the oil drilling.  As an example of this belief, look at the new apartment buildings that have been constructed in 2012, 2013, and 2014.  There are approximately eighty new units at the south end of State Avenue, approximately two hundred new units at the north end of State Avenue, approximately eighty new units near the new Menards, approximately one hundred fifty new units north of the North Park RV Park.  Just to the west of Tooz Construction there are about one hundred new units.  I have probably left out some of the new apartment buildings.  The North Park RV Park, the Heart River RV Park, and the South Park Trailer Park have probably doubled in size.  There are about four new large “Extended Stay” hotels.

I partly want to find fault with the real estate developers/investors, and then again I don’t.  It is good that there are more places to live in Dickinson, it was necessary to have more places to live.  If you have read my previous blogs, you can’t stay at WalMart, the truck stops, or Patterson Lake anymore.  You can’t live in a tent in someone’s backyard for $700 a month anymore.  However, I don’t know how much longer the new housing units are going to be needed.  The real estate developers/investors and new home buyers have got to be thinking that the oil drilling is going to continue for more than several years, either that, or they think that the economy is so big in Dickinson now that it is not entirely dependent on oil drilling.

An indication that the real estate developers/investors have seen the possibility of the oil drilling not lasting more than several years, is the extremely high rent prices. You might have read in my previous blogs that a one bedroom apartment will be at least $1,500 per month, and that a two or three bedroom apartment will be $2,000 to $3,000 per month.  The high rent, I believe, is in part due to the real estate developers/investors realizing that the oil drilling could stop, and that they need to get back the money they invested as soon as possible, while they still can.

My point in this particular blog, is again, to look at what has happened in the past.  In Gillette, Wyoming, there was an oil and gas drilling boom, many new housing units were created, with the expectation that the economy would not fail.  When the drilling stopped, apartment buildings became vacant or were never completed.  Be aware of what could happen, and plan accordingly.

Oil Field Speculation in Dickinson, Part I

I arrived in Dickinson, North Dakota, in May of 2011, stayed for eight months, then came back in May of 2013, and have been here since.  I have become friends or acquaintances of several long time residents who are now in their 60s, “DS”, “IB”, and “CL”.  I have to use these initials to protect their identities.  Each of these individuals had business and social dealings with each other, so I have been able to cross check what each of them has told me.

In approximately the mid 1980s, there was an oil boom in Dickinson.  Many local people were making a great deal of money.  “CL” was about thirty years old, and at this time he bought a new truck, a new car, and a manufactured home in a twelve month period.  His friends and acquaintances did the same thing.  Within a few years, “CL” had to move back in with his parents, and had to go to work at a grocery store, because that was the only job he could get.  The same thing happened to his friends, they went from having their own homes and new cars, to living in apartments and driving beaters.  The oil field jobs went away, and it was hard to find even a low paying job in Dickinson.

Within a couple of years of the oil field jobs going away, property prices had fallen tremendously in Dickinson.  “IB” and a business partner were able to scrape enough money together to buy some warehouses on several acres of land for about $6,000 each, even though it was very hard to earn money in Dickinson at that time.  “IB” and his business partner had worked in the oil field and they strongly believed that eventually the oil drilling would have to come back to Dickinson.  “DS” was about forty years old, and he was able to buy 30 acres of land that nobody wanted for about $20,000.

When I got here in 2011, “IB” and his business partner were getting about $30,000  per month in rent from the different warehouse buildings that they had bought, I was told.  Once I found out which warehouse buildings they were, and what they were charging for rent, that dollar amount was approximately correct.  “DS” had his property for sale for about $3 million.

Both “IB” and “DS” were stressed individuals.  They had had to go through a lot to buy their properties when money was scarce, and hold onto their properties through bad economic times, over about twenty years.  Nobody knew when or if the oil drilling would come back.  If it would have been a sure thing, real estate prices would not have gone down, and everybody would have bought property.

Rather than this being a lesson in investment, I want this to be a warning.  The oil drilling came to Dickinson in the past, everybody was making money for a few years, and then the oil drilling went away, leaving many people broke.  Many people spent the money they had made very quickly because they thought that their jobs would last longer than they did, and that they would have the chance to pay off everything that was bought on credit: cars, motorcycles, boats, homes.  Keep in mind also that real estate prices dropped tremendously within a few years.  There were very few jobs in Dickinson then, and the jobs were low pay.  Do not fail to understand the lessons of the past, please try to remember what has happened before and plan accordingly.