Tag Archives: what does a Biden Presidency mean to North Dakota

What Does The 2020 Presidential Election Mean To People In Western North Dakota

In yesterday’s blog post article, I explained that there is an appeal to Communism and Socialism, in that it promises a more equitable distribution of wealth and resources.  However, the mechanisms by which Communism and Socialism redistributes wealth and resources is by totalitarian dictatorships, with brutality, no freedom, no choice, no alternatives.

I believe that the poor urban city-dwellers in places like Los Angeles, Portland, Seattle, Chicago, Detroit, Philadelphia, and Baltimore looked forward to getting free health care, child care, housing, utilities, food, and higher education, provided by the government, that is why they voted for Joe Biden.  But don’t these people know, that when the government takes everything from the rich and upper-middle-class, the government takes over all businesses, provides everything for everyone, that life for everyone in the U.S. will become the same as it is in Russia, China, Cuba, or Venezuela.  Do people in the U.S. really want to begin living like the people in China?

In North Dakota, like most of the sparsely populated, agricultural mid-western states, the majority of people voted for Donald Trump.  The majority of people in the mid-western states want to continue living the way that they have been living, with as little government intervention and interference as possible.  A smaller Federal government and less Federal income taxes would be preferable, the opposite of the feeling of the urbanites on the west coast and the east coast.

If Joe Biden is elected President, and it looks like this could happen, he has said in the past that he would like to eliminate hydraulic fracturing as a means to produce oil wells.  In North Dakota, it wasn’t until the invention and use of hydraulic fracturing in the early 2000s that North Dakota oil could be extracted profitably.

Due to the current World oversupply of oil and oil market manipulation to cause the price of oil to remain at $40 per barrel, North Dakota oil can not be produced profitably at this time.  Since 2015 when the price of oil dropped, the number of oil drill rigs operating in North Dakota has gone from 190 down to 10 operating drill rigs currently.

It is estimated that each operating drill rig in North Dakota creates 100 direct and associated jobs.  190 operating drill rigs in 2015 means 19,000 jobs were created, whereas 10 operating drill rigs currently means at least 18,000 jobs were lost.  This drill rig count has everything to do with the price of oil, and whether oil can be produced profitably or not.  North Dakota oil can not be produced profitably at all without hydraulic fracturing.

For the oil producing states of Montana, North Dakota, South Dakota, and Wyoming, not only will these mid-western states not have operating drill rigs if hydraulic fracturing is banned, energy companies, oil companies, and oil-field service companies will begin moth-balling their facilities, which would include operations offices, equipment yards, truck fleets, pipe-lines, and refineries.

How could the Marathon owned refineries in Mandan and Dickinson, North Dakota refine oil if their regionally produced oil extracted by fracturing is no longer available?

Another casualty of the Joe Biden Presidency will be oil pipelines.  Again, and again, and again liberal activists and liberal judges have delayed the construction of such pipelines as the Trans Canada Keystone XL pipeline, and interfered with the operation of completed pipelines such as the Dakota Access Pipeline.  Will any private company risk the huge investment to construct or operate any oil pipeline if the President himself Joe Biden is likely to assist the road blocks, legal battles, and impossible permitting processes?

I don’t think that North Dakotans have thought this through, because they didn’t have to, Donald Trump was most likely going to win re-election.  Right now, local economies in western North Dakota are treading water, not really advancing, but trying to stay afloat.  I don’t think that anyone could have predicted the terrible multiple affects a Joe Biden Presidency would have on North Dakota.

It’s not just that North Dakota oil can’t be produced profitably without hydraulic fracturing, the existing infrastructure such as the DAPL oil pipelines, Johnson’s Corner oil storage terminals, the Petro Hunt Killdeer refinery, Marathon Mandan refinery, and Marathon Dickinson refinery are relying on this regional oil supply and oil pipelines.