Will Bakken Man Camps Disappear?

Budget Cuts Affect Man Camps
Budget Cuts Affect Man Camps

As low crude prices continue to ravage the industry, the latest victims may be the man camps throughout the Bakken. These camps that have housed thousands are slowly emptying, and some are folding for good.

Read about Bakken Housing, Lodging, Hotels, & Man Camps

Man camps provide temporary employee housing to oilfield workers and have been a prominent feature dotting the landscape since the oil boom brought an influx of people to the region. These camps often provide dining, laundry, and recreational facilities and were given as a perk when things were hopping. But with energy companies tightening their belts, providing housing for workers is quickly on the chopping block for some companies. Instead of offering these perks, some employers are asking workers to cover their own rent, clothing, and transportation.

Jeff Zarling, president of Williston (N.D.)-based Dawa Solutions Group told Bloomberg, “It was a necessity of recruiting. But today, what we’re seeing is companies want to get out of the housing business.

Several companies have recently announced intentions to get out of the man camp business including Capital Lodge, one of the largest man camps in the Bakken that has plans to downsize and become a commercial hotel-style operation. Civeo Corp reported an 89% decline in their share price this year. The company slashed its workforce on Monday and said revenue could fall by a third.

Read more at bloomberg.com

New Bakken Man Camp Coming Soon

Dining Hall at a Target Logistics Property
Dining Hall at a Target Logistics Property

Target Logistics, a Boston-based builder and operator of housing projects primarily for the energy industry, secured a 30-million contract to provide lodging for Bakken Shale oilfield workers over the next three years.

According to the company, it will provide workforce housing to one of the largest independent (non-integrated) crude oil and natural gas companies in the United States. Target Logistics did not reveal their client in a company statement announcing the new contract in early April 2014.

Fueled by double-digit, oil-weighted production growth, this exploration and production pioneer turned to us for a well-organized, upgraded housing solution,” says Target Logistics President and Chief Operating Officer Brad Archer.

Unlike other housing  in the Bakken Shale region, the activity of residents is monitored. The company has strict rules against alcohol on the premises and guests of workers are not allowed to stay overnight, including worker's spouses.

The way it works is oil companies pay Target Logistics to house and monitor their workers, and the oil company then offers housing accommodations to workers as part of their compensation. This is important to companies seeking to retain employees in a region where there are limited housing options, and other companies vying for workers with attractive housing packages.

Recently, a study done by ApartmentGuide pushed Williston, ND to the top spot for the highest rent area in the U.S. According to the publication, a 700-square-foot, one-bedroom, one-bath apartment in Williston, North Dakota can cost more than $2000 per month.

Read more: Williston, ND Rent Soars Past Highest Rent Areas of U.S. to Top Spot

Dormitory-style housing, such as that offered by Target Logistics to employees of certain companies, will not be an option for everyone. In which case, there are other options to consider. Check out the Lodging page on BakkenShale.com to see recent postings for Bakken housing, hotels and man camps.

Read more at targetlogistics.net