Untangling Quality of Life and Oil Development: The Case of Western North Dakota By Felix Fernando Northern Plains Ethics Institute at NDSU

Acknowledgements Graduate committee Dr.Dennis Cooley (Primary adviser) Dr.Gary Goreham Dr. Robert Hearne Dr.Jack Norland Northern Plains Ethics Institute North Dakota Humanities Council Dr.Kris Ringwall- Dickinson Research Extension Center Leann Wolff Jay Krabbenhoft Tania Arseculeratne

Quality of Life (QoL)? Place Based Rational (Calculative) Cost and Benefits Emotional Meanings, Attachments

The Challenge Lack of prior studies None in North Dakota Novel type of oil and gas development-Horizontal drilling and fracking 2 nd wave of oil and gas literature was just beginning

Methodological Approach Content Analysis Williston Herald 01/2010 to 12/ letters to the editor 3877 online comments in opinion article section Qualitative Interviews and Focus Groups 89 in-depth, semi- structured, open-ended, face-to-face interviews First-hand observation of behavior 05/2013-8/2013 Over 200 interviews total Participants Key community informants University extension service Personal acquaintances of friends and family Snowballing/ Referral sampling Quantitative Survey Random delivery and pick- up approach A core hub town 321 A periphery hub town 361 Non-Parametric significance testing Hierarchical regression Demographic Age Gender Residency Socio-economic Income Inflation Preference index

Usefulness of Content Analysis Design and development of open ended questionnaire Identification of key informants and prominent people in the community as potential participants Construct a preliminary understanding of QoL in the context of western North Dakota.

Findings

Letter to editor : “ residents of western North Dakota are fed up with "man camps," unsafe communities and traffic, outrageous rental rates, and unsightly impacts to the very land which supports every aspect of life in western Dakota. Did any of the state "leaders" bother to ask if we WANTED to live in an "oil patch" no matter the impact on our way of life?... Most of us longtime Dakotans kind of liked what we had before this extreme "boom," namely the blue sky, good roads with light traffic, an agriculturally driven economy along with modest oil activity. ”

Cost of Housing Letter to editor : “the cost of rent is crazy! I recently read an ad for a five-bedroom mobile home for $8,500 per month!!! Who can afford this? No one can afford to pay these astronomical prices without compromising their family’s welfare. Most could not afford to bring their families to Williston due to the cost of living. It is really sad. I appreciate North Dakota for making a better life for my family, I just wish we could be together.”

Differences in Economic Positioning Letter to editor: “ people who do service jobs just can’t afford to live in Williston or the surrounding area anymore. Lots of folks are not willing or ABLE to work the long, hot, cold, tiring hours required in the oil patch. And let us face it: We need waitresses, gas station attendants, clerks, CNA’s, janitors, stock people and other service workers. And they need places they can afford to live and wages that will allow them to pay the upped prices.”

Qualitative Interviews

Community QoL Negative conditions Family experience Increased traffic and accidents Crime and issues of safety Loss of small town environment Lack of quality family time Work experience Long working hours Overwhelmed services Work associated stress Social experience Disproportionate male to female ratio Rapid influx of people Out-migration of longtime residents Low degree of acquaintance and trust Community experience Rapid pace of change Increased cost of living Overtaxed community infrastructure and amenities Noise and dust Increased traffic on rural roads Change in landscape Transient people who don’t care for the community Positive conditions Family experience In-migration of young family members Work experience Variety of good paying jobs Range of employment opportunities Opportunity for quick career advancement Social experience New residents In-migration of people with roots Community experience Younger population Increased diversity Infrastructure investments New business choices (retail, dining etc.) New entertainment and recreation choices New residents QoL after the boom Positive conditions Family experience Feeling of safety Stable community Small town environment Low crime Necessary amenities and services Work experience Farming/ranching associated services Social experience High degree of acquaintance Trusting and helping each other Community experience Laid back lifestyle Low cost of living Quiet and peaceful environment Simple community needs Access to outdoors and environmental based amenities Negative conditions Family experience Out-migration of young people Work experience Fewer job opportunities Lower wages Lesser opportunities for career progression Community experience Older/declining population Consolidation of amenities (both public and private) Few additions to services (both public and private) Few new businesses Lack of vitality QoL before the boom

QoL : “I think we had a real high quality of life here. Even if there wasn’t the highest and best employment opportunities people still stayed here because the quality of education was very high. The quality of recreational especially outdoors was very high. The quality of life the community was able to provide in terms of public safety and public services were also very high. So I think that’s what kept the people here prior to the boom.” Positives: “ I’ve lived here with my family for 38 years. Up until about 6-7 years ago this was really good place to raise your children. Very quiet town, everybody knew everybody, it always felt safe, and didn’t have to worry about locking your doors and that kind of stuff. It was a safe environment for the kids. ”

Out-Migration: “ well, I went to a country school, and that school did close in the 90’s. All during the time that I was raised here there was never any growth. I have two sisters, so when my last sister left that was really hard on him [my dad].” QoL: “ it was mostly agriculture. The community still had the things that they needed, the schools were there, we had places where we could get our groceries, you could still take your kids to the park, your friends were still there. It was safe. Life was good.”

In-Migration: “We have more people with diverse backgrounds. You know, you see what used to be all white people essentially and now you see other people and that’s nice. I mean I like that.” Amenities: “ That’s the good part of the boom. We’re starting to get in some things we needed. We are getting in different business places, we are getting in more motels, apartments. We are getting in many different things that will benefit the city in the long run.” Cost of Living: “ The negative side of it to me is cost of living. It’s expensive to live here. I wish it was a more even, where everybody would say I do have an opportunity to financially advance myself because of the opportunities the oil is providing, but really lot of people don’t have extra money. It costs that much to live. It’s a stress for people because they look at that and say well I’m making more money but I’m not really taking and putting more money away.”

Positive QoL Negative QoL Entrepreneurs and Mineral rights owners Oil Industry Workers Home Owners Non-Oil service Industry and Public Service Workers Renters Senior Citizens Positioning in Economic and Income structure Status of Home Ownership Positive Factors Family experience In-migration of young family members Work experience Variety of good paying jobs Variety of economic opportunity Opportunity for quick career advancement Social experience New residents In-migration of people with roots Community experience Younger population Better ethnic and racial diversity Infrastructure investments (roads, housing, public services) New businesses New entertainment and recreation choices Negative Factors Family experience Increased traffic and accidents Crime and issues of safety Transient people (bad apples) Loss of small town environment Lack of quality family time Work experience Long working hours Overwhelmed services (retail etc.) Work associated stress Social experience Disproportionate male to female ratio Rapid influx of people Out-migration of longtime residents Low degree of acquaintance and trust Community experience Rapid pace of change Increased cost of living Overtaxed community infrastructure and amenities Inaccessible services (healthcare etc.) QoL Factors that Affect the Entire Community

Drivers of QoL Affordable Housing Investments in public services Investments in infrastructure Attracting new businesses Community integration programs

Summary of Findings Difference in perception of QoL between those who are in a position to benefit financially from the boom and those who are not. Difference in perception of QoL between those who are subjected to an escalation in cost of living (especially housing) and those who are not. The boom has created several new positive conditions at the expense of several positive Qol conditions that existed before development.

Survey

Socio-economic Status People could benefit Mineral rights or lease rights Business ownership Land Lord Working in the oil industry Selling resources (water) to the industry Exposure to level of inflation Owned housing (living with family) Rented housing Employee provided housing

Community QoL Preference Index 7 point scale High density of acquaintance vs. low density of acquaintance Safe stable community vs. changing and adapting community High paying jobs vs. low cost of living Small town rural environment vs. suburban type living Conservative homogenous community vs. diverse community Laid back life style vs. fast paced life style Quiet and peaceful environment vs. opportunity for economic growth

QoL Rate QoL on a scale of -5 to +5 Rate Life Satisfaction on a scale of -5 to +5 Total QoL score a -10 to +10 Subsequently recoded as a binary response (0,1)

Results: QoL Perception Differences QoL Differences- Demogrpahic Hub_CoreHub_Peri Gender Age- K-W Residency- K-W Female (Above and below 60) Male (Above and below 60) QoL Differences: Socio-Economic Hub_CoreHub_Peri Benefit and don't benefit0.000 Inflation: exposed and not0.000 Female:Benefit and don't benefit0.000 Male:Benefit and don't benefit0.000 Female-Inflation: exposed and not Male-Inflation: exposed and not

Logistic Regression- Total QoL Female- Level One Hub_CoreSig Hub_PeriSig N Omnibus Tests of Model Coefficients Chi-Square Nagelkerke R- Square 3.4% 5.1 % Hosmer and Lemeshow Goodness of Fit Test Chi-square Variable Estimates BExp (B)SigBExp (B)Sig Age (60 and below) Residency

Logistic Regression- Total QoL Female- Level Two Hub_CoreSig Hub_PeriSig N Omnibus Tests of Model Coefficients Chi-Square Nagelkerke R- Square 47% 32.6% Hosmer and Lemeshow Goodness of Fit Test Chi-square Variable Estimates BExp (B)SigBExp (B)Sig Age Residency Benefit Inflation Pref-Index

Logistic Regression- Total QoL Male- Level One Hub_CoreSig Hub_PeriSig N Omnibus Tests of Model Coefficients Chi-Square Nagelkerke R- Square 19.4% 4.1% Hosmer and Lemeshow Goodness of Fit Test Chi-square Variable Estimates BExp (B)SigBExp (B)Sig Age (60 and below) Residency

Logistic Regression- Total QoL Male- Level Two Hub_CoreSig Hub_PeriSig N Omnibus Tests of Model Coefficients Chi-Square Nagelkerke R- Square 66.5% 66.9% Hosmer and Lemeshow Goodness of Fit Test Chi-square Variable Estimates BExp (B)SigBExp (B)Sig Age Residency Benefit Inflation Pref-Index

Concluding Remarks Demographic variables had low explanatory power in QoL perceptions Socio-economic variables had comparatively more explanatory power Whether they benefit or not is an important determinant for men than women Preferences about QoL characteristics influence QoL perceptions Level of exposure to inflation influences QoL perceptions of women For new-comer women exposure to inflation influences negative perceptions of QoL

Potential trends for the next 5 years Level of economic activity will remain the same or increase Interest for employment in the area will remain the same Population will become younger Housing demand will continue to increase Drivers and conditions that will improve QoL Affordable Housing Reduction in cost of living Potential for new businesses and enhanced public services. Opportunity for better community financial condition Opportunity to attract new permanent community members Prevent out-migration Investment in Community Infrastructure Less issues of traffic and accidents Recreational and entertain opportunities to suit a younger population Retention of new residents Investment in Public Services Better sense of safety and security Available and accessible services Community Integration Programs Build unity and trust Attraction of New Businesses Wider variety of products and services Better Choices for daycare etc. Drivers and conditions that will worsen QoL Lack of Affordable Housing Cause of out-migration Barrier to new and existing businesses Barrier to enhance public services Barrier to bringing families of employees Highly transient population Lack of investment in Community Infrastructure Traffic and safety issues Waiting lines and long commuter times resulting in frustration and stress Overtaxed public services Safety and security issues Worker stress and potential turnover issues Lack of Community Integration Lack of unity and trust within the community Lack of attachment to community of new community members Lack of social support groups and networks for new and longtime residents. Better QoL Worse QoL Non-Oil service Industry and Public Service Workers Renters Senior Citizens Entrepreneurs and Mineral rights owners Oil Industry Workers Home Owners Present status of QoL

Questions?