Zach Koppang | Shale Plays Media
An initiative that aims to reduce costs and increase efficiency
for operators in the Bakken formation has been launched by Williston
Economic Development.
The program, dubbed the Enhanced Bakken Supply Chain Initiative, will
target manufacturing and logistics business development in North
Dakota’s oil fields. In a news release, Williston Economic Development
Executive Director Shawn Wenko said, “The oil and gas operators in the
Williston Basin face a higher break-even crude price due to higher costs
and inefficiencies in the Bakken supply chain.”
The initiative believes there are many companies that will be able to
serve the industry in such a way that production costs will be reduced
and turnaround times improved. The oil and gas industry utilizes a
variety of commodities and specialized equipment. The majority of these
products, though, are located hundreds of miles away and are expensive
to obtain and transport. The initiative will try to bring regional
businesses offering these products and services closer to drilling
activity in the Bakken formation.
Related: Shale boom a boon for manufacturing industry
The initiative will bring together manufacturers, machinists,
suppliers, commodity sources, logistics companies and manufacturing
representatives in an effort to cultivate business development
opportunities that are mutually beneficial to both suppliers and
operators. Wenko said, “One of our goals in 2015 is to help more of our
regional manufacturing firms get connected to the oil and gas industry.
Given the magnitude and expected duration of this $30 billion industry,
now is the time to grow and diversify our economy throughout the
region.”
The Enhanced Bakken Supply Chain will reach beyond the Williston
Basin into the greater region. President of DAWA Solutions Group Jeff
Zarling said, “We fully recognize the labor and other challenges facing
manufacturing in the Williston Basin. While we may need to make widgets
in Wahpeton, it is important to own the supply chain in Williston. The
well-head is where the problems exist, the relationships are built, and
the solutions are developed.”
Currently, manufacturers in the state servicing the agriculture
industry are facing a downturn. The oil and gas market has created an
opportunity to expand the industry into different areas. Zarling added,
“We need to start connecting those dots with regional manufacturers that
serves the oil and gas operators. The end result is a win-win with
reduced costs for operators and economic development and diversification
for companies and communities throughout the region.”
For more information, visit the Manufacturing and Logistics in the Bakken website by clicking here.