MADC Joins Modern Oil and Gas Industry Initiatives

Posted: Mar 27 2015
The Minot Area Development Corporation attended the ManLog: Manufacturing and Logistics Conference held in Williston March 25-26, 2015 to network with Bakken impacted businesses, to represent and explain the Port of North Dakota expansion, and to learn more about where the Oil and Gas Industry is headed.

Recent changes in the Oil and Gas Industry has led to many concerns and questions for North Dakota's future business activities, but regions within the Bakken have a positive view of the industry changes!madcmodernoilgas15.jpg

Manufacturers, machinists, suppliers, commodity sources, logistics companies, and other stakeholders in the energy industry gathered at the ManLog Conference for market information, opportunity exploration, and connections. Although the recent fluctuations in the Energy Industry have caused concerns, the change offers a great opportunity to focus on increased efficiencies and cost reductions.

Among many of the topics discussed from industry leaders, here are a few key takeaways from the ManLog Conference.

Impact:
• $43 Billion was generated by the Industry in ND for 2013
• Over 55,000 Direct Jobs and over 26,000 Secondary jobs were created
• $28.5 Billion was generated in Non-Industry business activities such as retail, financial services, etc.
• $1.3 Billion was generated in manufacturing
• $838 Million was generated in transportation
• Over $15 Billion was estimated for exploration and development in 2013

Current Challenges:
• Outsourcing delays and complications
• Overcoming the boom reputation which has caused businesses no desire to expand into ND
• Lack of infrastructure
• High costs
• Preventing the "boom and bust" cycle

Opportunities:
• Local manufacturing can greatly cut costs and increase revenues for energy businesses. Local manufactured products in demand include: drill bits, well casing, well head equipment, conductor pipe, cement, heater, pump jack, etc.
• Warehouse inventories for more accessible product replacements
• Remanufacturing and rebuilding of equipment
• Recycling and reuse of materials in industry
• Innovation of process disruptive technology
• Logistic management for efficiency

Actions to Take:
• Lock in longer contracts to ensure consistent crews for operations
• Sharing best practices
• Collaboration with other industries
• Utilizing technology: inventory control, paperless, e-ticketing, etc.
• Six sigma efficiency
• Penetrate market by joining trade organizations
• Approved vendor list: trust, flexibility, financial capabilities, etc.