11-12-2012 - Bakken, N.D. oil boom brings opportunities to real estate developers; Law Bulletin Publication Co. to hold Bakken Conference in N.Y.C.

The Bakken area of North Dakota is booming. That's largely thanks to the wells that, because of the rise of fracking, are producing so much oil in this part of the world. It's little surprise, then, that so many real estate pros are heading to North Dakota. There are plenty of opportunities here: The Bakken area's workforce has boomed much like its oil production. They need places to live and shop, and commercial developers are more than eager to build. "The need there is all over the place," said Paul Hegg, CEO and president of Sioux Falls, S.D.-based Hegg Companies, Inc. "They need everything from lodging to housing to personal services." Hegg, of course, is exploring ways to fill these needs. And he's far from alone. When Midwest Real Estate News, Minnesota Real Estate Journal and Illinois Real Estate Journal combined to host its Opportunities in North Dakota, the Bakken & the Williston Basin conference July 18 in Chicago it attracted more than 400 attendees. This demand has encouraged Law Bulletin Publishing Co. and Hegg Cos. to hold another conference focusing on opportunities in this region, this one in New York City. The North Dakota & Bakken Investors New York Summit will be held Nov. 13 at the Sheraton New York Hotel in New York City, and will cover real estate, energy, oil, investment and economic development opportunities in the state of North Dakota. The Bakken has certainly captured the attention of some of the biggest players in the oil and gas industry. Chris Faulkner, the founder, president and CEO of Breitling Oil and Gas, an independent oil and natural gas company based in Irving, Texas, recently wrote about the area in a column for Minnesota Real Estate Journal. Faulkner pointed to the low unemployment rate in North Dakota - a miniscule 2.9% at the time of Faulkner's column - as evidence that the oil boom is helping lift the state from any economic doldrums. "States that have cleared the way for more oil and gas production are attractive for investors," Faulkner said. "Private oil and gas investment can provide increased monthly cash flow that's insulated from the vagaries of the broader economy." Towns in and around the Bakken are seeing their populations skyrocket. Many are dealing with severe housing shortages thanks to this. And everywhere, it seems, developers are building new hotels and apartment units. But even with the plentiful opportunities in the Bakken, not every developer or investor is ready to send money to North Dakota. Some need more convincing that today's oil boom isn't just a fad. They want reassurance that the growth in North Dakota won't screech to a halt as oil wells dry up. Those commercial real estate pros and government officials already in the Bakken, though, say that these worries are misplaced. "Some people do ask me, 'When will this stop?' They envision a day in the future when tumbleweeds are blowing through," said Justin Glasgow, director of real estate investment banking at Robert W. Baird & Co., during the July conference in Chicago. This reticence isn't surprising. Investors are taught to sink their dollars into so-called gateway markets, big cities that have diverse economies. Minot, N.D., for instance, doesn't seem to fit that definition. "Guys look at you like you're crazy when you talk about Minot," Glasgow said. "You have to reassure them that this is a long-term play." As John Zimmerman, founder and managing member of Intervention Energy said during the conference, "This is an industry we are talking about here, not a boom." The comfort level among investors, though, is building, said both Glasgow and Zimmerman. And if attendance at the Chicago conference was any indication, it's building quickly. More than 400 people attended the conference, many flying in from across the United States to learn about opportunities in North Dakota. "A year ago, I was still building my confidence in this area," Glasgow said. "That's changing now, though. I am meeting with a lot of potential investors. They are all interested in this area. They know what an opportunity exists in this region." The New York Bakken conference will feature several important speakers, including Faulkner, CEO of Breitling Oil & Gas; Joe Ryan, CEO of Oppidan Investment Co.; Jerry Chavez, CEO of the city of Minot; Tim Fisher of Bakken Energy Solutions; Jack Ekstrom of Whiting Petroleum Co.; Andy Peterson, president of the North Dakota Chamber of Commerce; and Tom Rolfstad, president of Williston Economic Development; and several others. The conference is being held at the Sheraton New York Hotel, 811 7th Ave. 53rd St.. The event starts at 7:55 a.m. and adjourns at 4:30 p.m. Those who register by Oct. 30 will receive an early bird rate of $379. Those who register by Nov. 12 will pay $479. The walk-in rate is $579. For more information or to reserve a space at this conference visit www.bakkensummit.com or contact Jeff Johnson at 952-405-7780 or [email protected].