Article supplied by North Dakota Oil Housing
In North Dakota Oil is booming, and so are rental Returns, up to 37% net on investment! When it comes to global supply and demand, few commodities are more important than oil.
The USA is the world’s largest consumer of oil. It is also in the fortunate position of having discovered one of the largest oilfields on the planet in North Dakota. Known as the Bakken Formation, the oilfield has led to the International Energy Agency predicting that the US will become the world’s top oil producer by 2017.
This astonishing US oil boom is enabling North Dakota to defy the laws of economics during the current economic climate. With more oil in reserves than Saudi Arabia and the UAE combined, the pressures from this rapid growth are evident. According to recent reports there could be as much as 24 billion barrels of oil in the Bakken Formation, more than double the amount originally estimated.
The Bakken Formation is causing a stir across the world and has been featured recently by the BBC, CNN, National Geographic, Time Magazine and the Wall Street Journal. This is causing waves across the USA as engineers, oil and service-sector workers and labourers flock to North Dakota in search of jobs and opportunities, where even manual labourers are paid as much as $150 per hour. Of course, it goes without saying that the large oil companies such as Exxon Mobil, Chevron and Halliburton are already heavily involved.
The Bakken Formation’s explosive economic impact and its remote location have created a unique situation, with some 15,000-plus oil and service-sector workers struggling to find accommodation. Thousands are being forced to sleep in tents or in their cars, in an area where subzero temperatures are common.
With such high demand for accommodation, Executive Hotel Studios offers a high-end, low-cost and technologically advanced solution. The Executive Hotel Studios provide the high-quality accommodation option that the oil and service-sector workers are lacking, with rental income supported by some of the world’s largest oil companies. Investors can expect as high as 37% net annual rental returns, or if they choose, they can go with the 5 year, 25% return rental guarantee available.
As oil production from the Bakken formation continues to set records in North Dakota, the sheer pace and scale of the boom is still unfolding.
Stanford University/ Headwaters Economics
As a result of this incredible prosperity and with money flooding the area, North Dakota has the lowest unemployment rate in the USA, with less than 1% unemployment in some locations. Naturally, land prices are rising dramatically.
Currently only a tiny fraction of the 45,000 (and rising) oil and service-sector workers have suitable accommodation. The vast majority are sleeping in their cars, tents or trailer parks. The Bakken Formation’s location just below Canada means the weather can be extremely cold, creating a health and safety nightmare for the multinational oil companies looking to ensure the health and welfare of their staff.
The situation has created an incredible, untapped opportunity to provide accommodation in this area for the thousands of cash-rich oil and service-sector workers and employers struggling to find somewhere to live.
This information was provided by North Dakota Oil Housing, for more information contact Corr on 0409 455 604 or Helene on 0402 059 909 (both Australian numbers). Or Email: email@example.com
The above information is supplied by North Dakota Oil Housing.
Disclaimer: while due care is taken, the viewpoints expressed by sponsors and contributors do not necessarily reflect the opinions of Your Investment Property.
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