Seeking a share of the shale boom

SD launches study to evaluate ND’s Williston Basin-related activities

BY KRIS BEVILL

As the oil and gas industry continues to drive billions of dollars of activity in North Dakota, its southerly neighbor is looking for ways it too can benefit from the economic boom. In May, the Governor’s Office of Economic Development hired Black Hills Business Strategy to conduct a 14-month-long study to evaluate opportunities for the state to capture a bigger piece of the energy pie.

Hunter Roberts, state energy policy director, says some South Dakota businesses are already reaping the benefits of North Dakota’s boom, particularly in the areas of manufacturing, modular home construction and professional services. “With South Dakota’s proximity to the Bakken shale and Williston Basin, we are really positioned well to accelerate activity in this industry,” he says. “We are not only looking to bring new business in to South Dakota, but also to assist our existing companies that have the potential to serve this market.”

Black Hills Business Strategy is a Rapid City,

S.D.-based consulting firm that specializes in management consulting, turnarounds, mergers and acquisitions. Jim Quinn, managing partner, says several members of the firm have years of experience working for the oil and gas industry and therefore can provide a unique perspective to the South Dakota study. “How do you actually penetrate that market? If you’re not up there day in and day out you may not know about an opportunity, or even if you are, you get so inundated because of the sheer volume of activity around you that you may miss it,” he says. “Having this independent outsider look at it, and with our oil industry experience, we can provide a valuable resource for the state and South Dakota companies.”

The study will be split into three stages. The first stage, nearly complete at press time in mid-July, is focused on identifying operators, subcontractors and suppliers in the Williston Basin that offer the best opportunities for job creation in South Dakota.

The second stage of the project will consist of one-on-one conversations with identified compa-

Finally, the firm will work with the GOED to identify South Dakota companies that may be able to meet the Williston Basin’s unmet demands. The state may also explore opportunities for outside companies to relocate or set up branch offices in the state. A road map of the oil and gas supply chain will be created and shared with South Dakota businesses with the intent of expediting the sales process for companies interested in entering the supply chain.

The GOED will also continue to exhibit at trade shows in the region to promote opportunities in the state. “We feel this is a good plan to assist our businesses in capturing the oil boom opportunity, but ultimately it is up to business to take the risk, learn where they fit in the industry, make the sales and to capture the opportunity for themselves,” he says.

The overall goal of the project is to create jobs. But if that effort is successful, it is also possible that new job opportunities, combined with quality of life differences between Bakken and South Dakota communities, will help limit the number of South Dakotans migrating north to pursue oil field work. “We can offer an opportunity for them to get out of what I call ‘the blast zone’ of the boom itself,” Quinn says. “You’re not going to stop the guys who are after the money, but if they have an opportunity to get a good, quality job in their area of expertise, work for a small company here, keep the family environment and not have to put up with man camps, I think we could attract a lot of these guys to stay here instead of go up there.” PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com