Oil & ISIS

Last night, our President laid out a strategy to defeat ISIS (Islamic State of Iraq and Syria). This morning oil prices dropped to a multi-month low.

There has always been a correlation between our war in the Middle East and oil. Afghanistan occupies a strategic position between the Caspian region and the markets of Asia. The Caspian Sea area may have the largest oil reserves in the world. The problem has been getting it out. It’s virtually the only area in which oil companies could build pipelines. In 1996, Unocal and the US Government were excited about the Taliban’s rise to power, calling it a source of “stability” in the region.  These turned out to be pipe-dreams. Pun intended.

Now we have Kurdish oil in northern Iraq. Kirkuk, the epicenter of the northern oil region, was strategically captured last month by ISIS when the Iraqi Army fled their advance. 

This effects many economies, the closest being Turkey. Turkey definitely has a watchful eye on this as much of their oil comes from this region. Sayer Industries, the largest privately owned Turkish oil company, has wells in the area. They supply nearly 9% of Turkey’s internal demand.

Although this isn’t Sayer’s only drilling region, they are forced to look at new areas, such as the Ukraine,  in order to protect their investors.  Having funding pull out of Iraq could lead to greater destabilization of the region.

Another problem.  Iraq’s national resource ownership has gone unresolved for as long as we’ve occupied the area.

In a story from Jim Krane from Rice University, printed today, said that “The possibility that Iraq may be carved up in to autonomous ethnic enclaves is growing. If Baghdad is unwilling to demonstrate its commitment to power-sharing, Washington ought to outline one potential cost: and end to our opposition to Kurdish control over natural resources.”

Sixty miles from Galveston, the US government is not allowing a tanker into US territorial waters, leaving them in legal limbo. The reason: It’s Kurdish oil, and we publicly support Baghdad’s claim of control over Northern Iraq’s resources.

It was reported that the ship turned off their transponder and then turned it back on. This is a strategy used when there is a plan to unload into smaller tankers, making it a challenge to trace. This will put Kurdish oil into the open market.

Without territorial integrity of Iraq, and a decision not being made on Kurdish exports, we leave the power to ISIS who now controls the region. Hence, the oil.

Reducing Sunni alienation from Shia-dominated Iraqi government is the only way Obama’s plan can work against ISIS. In some areas, Sunnis believe it to be more tolerable to be occupied by ISIS than to be under the oppression of the Iraqi forces.

If we did not have unconditional support for Baghdad, making them more inclusive of other minorities, it would weaken ISIS’s stance in the region. Drastically.

Today is the 13^th anniversary of 9/11. While I am still saddened by the events that took place, I am also sickened that my son, the 5 year old boy who I tucked into bed September 11, 2001, is now serving in a military that is still fighting a war on terror. Why are we forced to confront this issue with military action when mere (force of) diplomacy would create a better outcome?

Want to Work in the BAKKEN? Here's what to expect.

I opened my email this morning and it is always the same - an email from someone that I don't know, asking how to get a job in North Dakota.

Current Stats: There are currently 22,000 available jobs in North Dakota, and with the state unemployment rate below 2%, it's fairly easy to find a place that will hire you. Finding a job isn't the problem. A great place to start is jobsnd.

Where most people fail is the planning that is involved to survive in the region.  

1. Don't come alone.  

Many people arrive alone. This should be avoided if possible. Some of the biggest challenges are having access to immediate money and loneliness. It could take up to 3-6 weeks to get your first paycheck, and that is if you have a job lined up. Making a deal with a significant other or friend can be beneficial. Have one person start in oil, and the other in services, such as a restaurant. This will give you the ability to bring in the big paycheck while having day to day needs met. Once the oil payday happens, the supporting "partner" can then look for work that better suits their desire. I encourage families to come to ND together when it's an option. The schools, communities, and people here are fantastic – and sparing the expense of traveling back and forth to visit, more than compensates for the higher cost of living.

2. Leave your drugs at home

This sounds like a no-brainer, but this is the BIGGEST reason why people have to leave. The oil fields are strict when it comes to drug testing. There is a 0% tolerance level due to our high safety standards.  If you're fired for a drug infraction, it is nearly impossible to get hired into another oil and gas related position. I promise, the financial gains are well worth it; and your bank account will thank you.

3. Rental management companies

It is much easier to get a home now than it was before, but housing can still be an issue.  Call the local rental management companies and have them pre-check your credit. Find out the price ranges and deposits. Most rentals won't allow animals, so be upfront with the rental companies so they can better serve you.  The more places that pre-approve you, the better chance that you’ll have of avoiding a few weeks in a hotel. Williston, ND is now the most expensive city to rent an apartment in the United States. Do your homework and know exactly what you'll need for your move-in costs and have it ready before you arrive.

4. Have a vehicle and AAA

In the Bakken, every major area is separated by at least 100 miles. Many newcomers take a train or fly into the region, you will need a vehicle; and preferably a 4 wheel drive. AAA is very inexpensive and they have great service in the region. In the freezing temperatures it is important to have a plan in place in case you are caught between towns and need a tow, gas or a flat to be changed. I use their services religiously and have never had an issue.

5. Have a hobby.

Whether you are learning a new language, or playing fantasy football, working on an online degree, or exercising, it is important to keep busy. When there is nothing to do, it is easy to get into a habit of drinking, gambling, or sitting at a bar for hours. This can be expensive, and frustrating. Put together personal goals that will better yourself, and invest in those. There are many online services that give free college classes, books, language classes, or a better understanding of Oil & Gas industry.  Continually invest in yourself so if you ever want out of the oil business. You will have more skills to offer another company.