Senator Conrad examines housing needs in North Dakota oil patch

Senator Kent Conrad today convened an official field hearing of the Senate Budget Committee to explore the critical housing shortage facing western North Dakota communities.

At the request of Senator Conrad — the chairman of the Senate Budget Committee — Daniel Sullivan, the Director of Policy for Multifamily Development for the U.S. Department of Housing and Urban Development, and Richard Davis, the Acting Deputy Administrator of Rural Development for Single Family Housing at the U.S. Department of Agriculture, appeared at the hearing to participate and learn firsthand about the region's housing challenges.

Members of the community, local leaders, and industry experts testified to the numerous housing challenges faced by the influx of new residents who have traveled to the area to fill oil development jobs. The housing shortage has forced hundreds of people to live in motel rooms, or at campgrounds, or in other temporary quarters.

"We're facing a unique challenge here in the oil patch. We have plenty of jobs, but not enough housing for the people who hold them. This challenge, if left unchecked, could stifle future growth in the region," Senator Conrad said. "We need to explore the needs of these communities to determine if there are ways the federal government can be a partner in efforts to expand housing and other necessities, such as infrastructure and emergency services."

“We have seen tremendous growth in western North Dakota thanks to the Bakken boom,” said Congressman Earl Pomeroy, who also participated in the hearing. “We don’t want to see a lack of infrastructure put a strain on that growth. I believe we need to take action to ensure we have the housing to accommodate all of the new workers coming to the area. The information we’re gathering today will help find out how best to do that.”

Due in large part to the abundant oil and natural gas reserves, the economy in western North Dakota has been thriving. Government estimates put the potential recoverable oil from the North Dakota portion of the Bakken formation at 2.6 billion barrels, and potentially up to 1.9 billion barrels in the Three Forks formation. Currently, 109 oil rigs are drilling in North Dakota, and officials say that figure could reach 150 this year. But because of the boom of new residents, there is not enough housing to meet the needs of the population.

Among those testifying before Senator Conrad today were Williston Mayor Ward Koeser, Stanley Mayor Mike Hynek, Bowman Mayor Lyn James, John Boyd from EOG Resources, Jessica Thomasson from Lutheran Social Services, and Matt Miles from Leadership Circle LLC.

Senator Conrad also announced that he is teaming up with HUD and USDA Rural Development to convene a conference in August to further address the critical housing needs in North Dakota. The 2010 Sustainable Home and Communities Conference will be held August 31 - September 2 in Fargo.

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