Oil Production Helps Attract Infrastructure
U.S. oil production helps boost domestic oil supplies while increasing infrastructure. A prime example of a modern day oil boom is North Dakota. Across the state, demand for housing, drilling rigs, office space and pumping units has expanded at an alarming rate, one that can literally not be met.
Oil production in this area has increased more than 700-percent over the past four years. At such a rapid rate of expansion, it’s been difficult for people who directly benefit from the oil industry – such as homebuilders, manufacturers, transportation experts, etc. – to keep pace. Potential pipeline systems are being researched, as this could potentially double the amount of daily oil production.
The challenge facing investors is not underfunding or overfunding projects. One of the region’s biggest challenges has been transitioning from the uncertain exploratory phase to the intense developmental phase. This latter phase requires substantial infrastructure and a stabilized workforce.
Many larger oil companies have helped make donations to public housing, medical facilities and hospitals, all in an attempt to attract a larger workforce. Running an oil mine is a big production. In fact, it requires adequate transportation systems, as without big rigs, oil has nowhere to be shipped. As land is prepared for oil production, expensive rigs are regularly moved to locate new nearby reserves. Equipment and supplies are costly, as is transportation fees to move this massive equipment.
In the U.S., the oil industry is responsible for infusing domestic economies with more than $2 billion each month, whether this is in the form of wages, purchases, sale of crude supplies or home purchases.
Many of these cities are simply ill equipped to deal with such rapid expansion. Without the necessary utility systems and housing to accommodate an influx of employees, city streets are suffering from massive congestion and many workers are forced to live in temporary work camps.
Looking forward, these fast-growing areas can literally help transform the U.S. economy, providing abundant employment opportunities for those that are unemployed, offering medical insurance families and individuals that are uninsured and even help to boost the housing market.
The booming natural resources mining industry has created a significant demand for MineLoans. Specialty funding for borrowers includes monies for gold mine loans, coal mine loans, natural gas loans and oil well funding.