Heather
Scallion waits for a job at the Command Center temporary employment
agency in Williston, North Dakota, a once booming oil town (AFP
Photo/Robyn Beck)
by Nova Safo
Williston
(United States) (AFP) - In the chilly air before dawn, a handful of men
and women huddle in front of a small, one-story building on the
outskirts of Williston.
They are waiting for Central Command, a temporary work agency, to open.
Workers
in this oil town in the US state of North Dakota, just an hour from the
Canada border, once had their pick of jobs. Many are now looking for
any work they can find.
"They
don't have very many jobs for us right now," said Heather Scallion, who
traveled some 1,300 miles (2,100 km) from Arkansas, thinking there was
still low-skilled work here.
"Hurting for money, honestly," she explained.
Nearby,
a ragged man in his 30s slept on a couch. Scallion was fairly certain
he was homeless, because he slept on the same spot every day, wearing
the same clothes.
Just
minutes from this temporary work site, at the state-run employment
agency Job Service North Dakota, it is a far different world. There is a
shortage of workers for highly skilled positions in drilling and oil
pump maintenance, among others.
"There
were layoffs when oil really tanked," said Cindy Sanford, who heads the
agency's Williston branch. "Now what's happening is those companies are
bringing people back."
North
Dakota is now seeing hints of a recovery from the bust. As crude prices
have rebounded to the $40 range after a stunning crash, there are signs
that the industry is slowly regaining its footing.
But
the recovery has been uneven, a distinct case of the haves and the
have-nots, as skilled laborers see their prospects improving, while the
less desirable workforce feels little optimism.
- Oil boomtown -
The
Command Center offices are just across from the train tracks that used
to ferry coal, livestock and grains, but now shoulder trains loaded with
crude from the vast oil and gas deposits that lie deep underfoot, known
as the Bakken and Three Forks formations.
When
hydraulic fracturing, or fracking, and horizontal drilling techniques
made those deposits easier to reach, Williston became the epicenter of
North Dakota's oil production.
The
industry turned the sparsely populated state into a buzzing hub of
investment and hiring starting in 2010, while the rest of the US economy
was still stuck in low gear.
At
the height of the boom in 2014, Sanford said that they could be so
desperate to recruit workers they just had to make sure candidates were
alive.
"We'd laugh and we'd say, 'Breathe into the mirror. Oh, it didn't fog up. Try again,'" said Sanford.
In
those heady days, low-skilled workers could easily earn $18 an hour.
Williston doubled in size in about four years, to roughly 30,000 people.
Then,
the price of oil plummeted, from highs above $100 a barrel to below
$30, forcing many drillers to shut down their operations and lay off
tens of thousands. Booming Williston went bust.
- Hints of recovery -
From
his truck, Monty Besler points to so-called "man camps," make-shift
mobile housing developments once buzzing with out-of-town workers. They
now sit empty.
"We've
lost a lot of companies," said Besler, an oil industry consultant,
whose license plate reads
"Fracn8r" - as in "frackenator," a nickname
given to him by colleagues.
Besler has seen boom and bust cycles before.
"We'll have a winnowing, and in the process the stronger companies will survive," he said.
He has reason for such optimism.
While
oil production still continues to decline, analysts expect it to
stabilize next year. Meanwhile, the number of active oil rigs is rising
again and they have become more efficient and productive, according to
the US Energy Information Administration.
"The
industry is going to resume a very modest, but positive, growth in
supply in 2017," said Raoul LeBlanc, a US energy analyst at IHS.
He
cautioned that even though jobs are starting to return, salaries are
generally lower than in boom times. "We may never get back to the levels
of employment that we had," LeBlanc said.
But
Besler believes the industry can rise again. If prices can be sustained
in the $50-60 per barrel range, Besler said, "that starts to bring the
outside money back in, the investment groups that were pouring money
into the Bakken before."
The
city of Williston is anticipating that Bakken will power the local
economy for decades to come, budgeting $1 billion on roads, bridges, and
a new airport.
Companies are once again competing for workers. A recent job fair had 56 companies planning to fill 300 positions.
This
is all cold comfort at the Command Center, where few of those jobs are
expected to reach low-skilled workers any time soon. Kyle Tennessen, the
center's manager, is certain he will continue to have more people
lining up for work every morning than the number of jobs he can offer
them.
"There's going to be another boom. When is the giant question mark," Tennessen said.
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