Dakota Beacon

THE FRACKER’S DILEMMA  Lee Schafer, a writer for the Star Tribune, may be the best business/economics columnist in the region.  The essence of his February 15th column was “Shale oil passed its peak without making money.”  He said the shale boom in ND reached all the way to Minneapolis, but is now past its peak.  Those shale operators who survive will need to concentrate on positive cash flow — the industry spent $1 trillion, but has thus far returned only $700 billion.  Operators have what Schafer calls the “Fracker’s Dilemma” — should they stop drilling and squeeze cash out of existing oil production?

GRETA THUNBERG, the Swedish child climate activist, visited the Standing Rock Sioux Reservation and Bismarck in October and then left and dramatically crossed the Atlantic in her sailboat.  Was that the last we were to hear of her?  Not quite — her name created a political storm in Bismarck last week.  Photographer Shane Balkowitsch planned to put a 7-foot-tall mural of Thunberg on a Bismarck bakery wall, but was hit with a wave of threats.  The plan was hastily withdrawn.  Balkowitsch said he planned the mural as a celebration of art and not as a political statement about fossil fuels.

ARTIST DEFENDED  Forum commentator Rob Port seems to equally dislike Thunberg (“silly Luddite”) and Balkowitsch (“doesn’t seem like a nice person”), yet supported Balkowitsch’s right to display the mural.  He felt those who made the threats should be ashamed and accountable.  Port said, “The point of the First Amendment is not to protect speech you like. It's to protect speech you don't like.”

THE NEXT ACT  Mike Williams, a former Fargo city commissioner, is spearheading plans to bring the Thunberg mural to Fargo.  The mural is a blowup of a photo Balkowitsch took at Standing Rock — the photo has has been donated to the Library of Congress.  Williams arranged to have the mural hung with other artwork in SoMa Alley (unofficial name) in downtown Fargo and engaged Balkowitsch to print the panels.  The project will be financed by donations.  A Bismarck Tribune editorial said, “The fact that Fargo is working to find a home for the artwork that Bismarck rejected is an embarrassment for our community.” [Today, in response to the Bismarck incident, the Thunberg image was being shown on digital billboards across the nation and in foreign countries.]

THE LEGACY FUND EARNINGS COMMITTEE of the Legislature is holding public meetings around ND to explore uses of fund earnings.  This week the committee met in Watford City and, unsurprisingly, the residents want to use the money to solve Oil Patch problems.  School construction and infrastructure (roads and bridges) topped their lists.  Legislative leaders said a draft bill could come at the committee’s June meeting.

PIPELINE OPPOSITION  The ND Public Service Commission approved a pump station which will expand the capacity of the Dakota Access Pipeline.  The commissioners found the pipeline to be a safer and more efficient method of moving oil than trucks and trains.  Energy Transfer, the pipeline owner, has been opposed at every step by the Standing Rock Sioux, who fear environmental damage from the pipeline.  Commissioners said they expect their decision to be challenged in state court.

UNNERVING  “GFAFB pumps upwards of a quarter of a billion dollars into the local economy, including salaries, contracts and job creation. It brings families from around the country to Greater Grand Forks, many of whom stay after their stint in the military.” — A GF Herald editorial worrying about the reduction of drones in Trump’s defense budget.  The Herald said the cut was not an imminent danger to the base, but nevertheless unnerving.  The future of the GFAFB is tied to drones.

BERNIE’S LATE TO THE PARTY   Long before Bernie Sanders brought his version of democratic socialism, Scandinavian socialists tried to create their own utopia in the Midwest.  In a commentary in the Star Tribune, author Eric Dregni reminded that both Milwaukee and Minneapolis once had socialist mayors and Minnesota’s vast empire of ag cooperatives is another legacy.  Dregni went on to say “North Dakota went a step further.”  He cited the Bank of North Dakota and the State Mill and Elevator, both operating successfully today, as an inheritance from the socialist Nonpartisan League. 

SLOW, SUBTLE THEFT  Chad Waldoch was treasurer of the 200,000 member SMART Local 980, a hodgepodge of trade unions.  Over a six-year period Waldoch carefully embezzled over $100,000 — a scarcely noticeable $2.00 a member.  His indictment was filed in U.S. District Court in Fargo.

TRUTH IN ACCOUNTING  TIA is a non-profit organization which measures the financial condition of state governments and gives them a ranking and a grade.  TIA determines if a state has the ability to pay all its debts (surplus) or not (burden).  Ten states were in surplus and 40 had burdens.  The top three states received an A — they were Alaska, ND and Wyoming (all energy producers).  The next seven states received a B — SD (#7) received that grade.  The 13 states which followed received a C — Minnesota (#11) and Montana (#17) were in that group.  ND’s restricted investment reserves, including the Legacy Fund, were not considered in the calculations.  If they were, ND’s surplus would be much greater.  The same is true of Alaska and Wyoming.

SINKHOLE STATES is the name given to states receiving failing grades.  Starting with the worst, the Top 5 sinkhole states were: New Jersey, Illinois, Connecticut, Massachusetts and Hawaii.  Unfunded pension costs were the major problem for each of those states.  Until recently, states were not required to disclose pension liabilities in their reporting.  SD distinguishes itself by being the only state without any unfunded pension liability.

EAGLES UP, MEADOWLARKS DOWN  Isn’t that what you would expect — soaring eagles and meadowlarks nesting on the ground?  That was not what Mike Jacobs’ bird column was about — he wrote about rising populations of bald eagles in ND, while meadowlark numbers are dropping.  Eagles benefited from a ban on DDT and from fewer people in rural areas.  Habitat for meadowlarks is becoming scarcer and a growing number of red fox are also a threat.

DAKTOIDS:  A fast start for 2020 — January air boardings in ND were up 12% . . . Presidential candidate Amy Klobuchar will hit Fargo Sunday morning.