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.
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.