Tag Archives: oil

Modern-day boom towns in the American West

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While we might consider boom towns to be part of American history, the discovery of oil and gas in the American West is leading to rapid population increases with some negative effects:

Stepped-up oil and gas development in northwestern North Dakota and northeastern Montana is punctuating the landscape with drilling rigs, trucks and hastily erected barracks, known as “man camps,” to house thousands of mostly male workers crowding into small communities where residents once greeted each other by name and left their homes and cars unlocked…

In Sidney, Montana, about 45 miles (72 km) southwest of Williston, officials have been scrambling to keep pace with oil and gas activity that is expected to double the population – from 5,000 to 10,000 – in five years and add an estimated 774 new students to the public school system…

Utah State University sociologist Richard Krannich said years-long studies of boomtowns in the West show a sharp rise in negative consequences such as crime and the fear of crime in the earliest phases of a boom.

“But we also saw the recovery once the initial phase ended and the workforce stabilized, the pressure on local services eased and infrastructure caught up with demand,” he said.

I’m not sure how you prepare for this. I can’t imagine local politicians could say no to needed jobs and future revenues and yet the quick changes in a community are difficult to handle until revenue streams are established.

What I think is particularly interesting here is that communities across the country are subject to outside social forces that can quickly change their trajectories. I assume most of these Western towns were small and hadn’t changed much in recent years but as soon as valuable resources are discovered, things can change very rapidly. Each community can make different choices about how to respond. Of course, these rapid changes can’t or won’t last forever and the town will return to some equilibrium and once the resources wind down or are depleted, a downward cycle can begin again. Boom towns and ghost towns are notable because most communities don’t experience this kind of rapid change – we expect some kind of gentle growth or at least a stable plateau. Just the idea of population loss can be troublesome because it suggests a community is on the road to dying or it is going to lose funding for services and tough cuts will have to be made to budgets.

I wonder if there are any consultants or academics to help communities adjust to these boom periods in order to take advantage of them (mainly, find tax dollars) as soon as possible. Additionally, I imagine there are some interesting interactions between long-time residents and newcomers and both sides try to adjust.

Claim: Obama wants higher gas prices. Is this necessarily bad?

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Mississippi Governor Haley Barbour (a rumored Republican presidential candidate) suggested today that Obama wants higher gas prices:

Barbour…accused the Obama administration Wednesday of favoring a run-up in gas prices to prod consumers to buy more fuel-efficient cars…

Barbour cited 2008 comments from Steven Chu, now President Barack Obama’s energy secretary, that a gradual increase in gasoline taxes could coax consumers into dumping their gas-guzzlers and finding homes closer to where they work. Chu, then a Nobel Prize-winning professor, argued that higher costs per gallon could force investments in alternative fuels and spur cleaner energy sources.

Barbour said Obama’s energy team wouldn’t be happy until gas prices reached $9 a gallon.

Barbour goes on to say that there are two primary negative consequences of higher gas prices: it hurts workers and it hurts the larger economy. In a troubled economic period, Barbour is suggesting that Obama is willing to risk a prolonged economic crisis in order to promote things like electric cars and clean energy.

But this is really a larger issue and affects multiple dimensions of American life. Let’s assume that raising gas prices cuts down on driving and gas consumption overall – and there is evidence to back this up. There could be some benefits to this:

1. This would limit our dependence on foreign nations for  oil. What has happened in the Middle East in recent weeks can have an impact on our economy because we import so much oil. Some have gone so far as to say that this is a “national security issue.”

2. Using less gasoline would lead to lower levels of pollution.

3. Having more expensive gasoline may reign in sprawl, or at least make living in denser areas (cities or denser suburbs) more attractive. (See an example of this argument here.) In the long run, higher gas prices could be viewed by some as a threat (or by some as a welcome deterrent) to the sprawling suburban lifestyle that many Americans have adopted  since the end of World War II. Higher fuel prices would likely impact driving trips, fast-food restaurants, and trucking costs, all key pieces to the typical suburban lifestyle. One could argue that the American lifestyle of the last 65 years has been made possible by relatively cheap gasoline – and life would change if it was consistently at European price levels.

There could be other impacts as well including more walking and bicycling (cheaper, less pollution, better for health) and less time wasted due to traffic and congestion.

It bears watching how this rhetoric over gas prices continues. Is it simply a matter of a short-term (lower prices to help the economy) vs. a long-term perspective (higher prices help limit some negative consequences of driving) or could this turn into a debate about how driving (and cheap gasoline) is closely linked to the essence of American life?