Williston tops Fargo for taxable sales

[bisonaudit]

I think there is a lot of price gouging going on out there.

Or capitalism.

[WYOBISONMAN]

Or capitalism.

LOL......if you are paying the prices it is gouging......If you are on the other side.....capitalism.

[90BISON]

The last time I was out in Newtown a few months ago, which is all but overrun right now.......a HS classmate of mine, who is the Chevy dealer out there, told me that at the last Cenex annual meeting in Newtown, they announced that they had sold more diesel fuel in the past year, than they had sold in the combined history of the Coop! I think one of the latest vehicle counts on ND 23 through Newtown, was like 10,000 vehicles per day, 2/3 of which are semis......They formerly had one oil depot there, now they have or will shortly have 2......I think the oil trains that come in and out of there used to come once every 2 weeks, now they run 2 per day! It's honestly, not a town you really want to visit if not at all necessary......Stanley, Tioga and Watford City aren't much better......

[MNLonghorn10]

I am ready to move to Fargo, sick of the oil field trash.

I wouldnt. Id stay out of fargo. Did you read the thread about the 20 person scrum?? stay west. Hope some people here move out there too after reading this.

Williston is hoppin where fargo is droppin
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[reformedUNDfan]

I wouldnt. Id stay out of fargo. Did you read the thread about the 20 person scrum?? stay west. Hope some people here move out there too after reading this.

Williston is hoppin where fargo is droppin
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lol 10char

[HerdBot]

LOL......if you are paying the prices it is gouging......If you are on the other side.....capitalism.

Good analogy. But nobody is forcing people to move there. And if you already owned a house, the values have gone up dramatically so there is a benefit. Of course renters are pretty much screwed. I think once the free market takes its course, it will even out. May take a while. Where there is gouging, there will be opportunities for others.

[perthbison]

Oilfield equipment is damn expensive stuff. Pretty easy to see how this happened. The latest well we participated in located in Williams County (Williston) cost $12.8 million to drill and complete. Lots of sales tax revenue generated on each of those wells....and most of it likely gets credited to the City of Williston where most of the oilfield service companies and suppliers are located.

Just curious, what level of interest are these wells paying?

[1998braves64]

Just curious, what level of interest are these wells paying?

Usually somewhere around 1/7 - 1/6 (14-16% maybe higher if you're in prime spots) is the royalty payment for the mineral owner.

[ndsubison1]

any reason this came out after the election?

[Gully]

LOL......if you are paying the prices it is gouging......If you are on the other side.....capitalism.

IMO that's a shortsighted view. A different pespective would be that the higher prices the market is bearing will attract more supply (equipment, hotels, houses, etc.) The higher the price (market signal), the greater the incentive for folks to provide the supply.

It may be unpleasant to some and can be a bit messy in the short term. In the long term, however, economies governed by market forces and Adam Smith's "invisible hand" are more efficient than planned economies. Somehow artifically capping prices is how you ensure shortages over the long run.