SCHMID: TOP NORTH DAKOTA STORIES OF 2020
CORONAVIRUS
Yes, of course, the virus dominated the news for the last ten months of the year. Early on, there was a certain complacency in the state about the pandemic — a feeling that the state’s rural nature would spare it the extremes seen in New York and New Jersey. As the year went on, the complacency began to wear off, until the state was shocked to find itself in October and November with the highest per capita infection rates and active cases in the nation. Individual North Dakota cities issued mask orders and then the governor issued a statewide order. The combination of events seemed to wake people up and by yearend the state was among states with the lowest per capita cases in the nation. There was a hangover — the state has one of the highest per capita number of deaths from the virus.
SANFORD LOSES ITS POISE
Sioux Falls-based Sanford Health seemed like a picture of stability as the largest health care provider in the Dakotas. Then the wheels came off — a series of public relations disasters. Sanford’s wealthiest supporter, banker T. Denny Sanford, fell under investigation and its long-time CEO Kelly Krabbenhoft resigned after a silly blunder. Sanford had announced a major merger with a Salt Lake City health care provider. The leadership discord was sufficient to call off the merger, after which it became clear the merger had major detractors.
OIL PROVED SLIPPERY
The year started with optimism about the state’s oil economy — the source of half of state government revenues. The pandemic delivered a demand shock and near yearend Mineral Resources Director Lynn Helms sadly announced, “All in all, it was a pretty terrible year for the industry.” Production was 1.5 million barrels per day at the start of year, dipped to 858,000 bpd in May and recovered to 1.2 million bpd in October. Production is expected to remain around that level for at least a year.
CONTINUING CHALLENGES TO DAPL
The Dakota Access Pipeline is in the mainstream of the North Dakota oil industry. The pipeline carries roughly half of the state’s oil production and construction is nearing completion which will double pipeline capacity. The state’s economy will be significantly damaged if pipeline operation is interrupted. Litigation by the Standing Rock Sioux and related court rulings threaten operation of the pipeline. Rulings are expected soon as to whether DAPL may continue operating during an environmental review by the U.S. Army Corps of Engineers.
COAL CREEK IS ON LIFE SUPPORT
Coal Creek is a coal-fired plant which produces 60% of the electrical energy used by its Minnesota owner, Great River Energy. Coal Creek is North Dakota’s largest plant of its type and is located in Underwood. Because of continuing losses, GRE plans to close Coal Creek in 2022 — this will affect 265 Coal Creek employees and 400 employees of a related coal mine. GRE has offered to give Coal Creek away, but thus far there are no takers. There may be interest in a joint deal which would include the Coal Creek plant and a transmission line from the plant to the Twin Cities. Coal Creek and the coal mine are the area’s major employers.
ROOSEVELT LIBRARY BECOMING REALITY
The Theodore Roosevelt Presidential Library has chosen a 60-acre site in the small Badlands town of Medora. The library made significant progress during 2020. The foundation selected an architect (Snohetta of Oslo, Norway) and a library design which blends with the Badlands. The foundation raised $100 million, thereby securing a $50 million operating endowment from the state of North Dakota. Half of the $100 million came from members of the Walton (Walmart) family and much of the other half came from prominent Nodaks, including Governor Burgum. Enthusiasts envision the library as part of a tourist triangle with the other two corners being Yellowstone and Mt. Rushmore.
“REGRESSED” and “MALCONTENT”
Those are hurtful words directed at Philadelphia Eagles quarterback Carson Wentz by the Philadelphia Inquirer. Up until recently, the Inquirer has been a cheerleader for Wentz extolling his competitive spirit and innovative play. An accumulation of sacks, fumbles and interceptions this season soured the Inquirer. The North Dakota athlete is benched and Philadelphia fans and media are engaged in speculation about how and where he will be traded.
TIME TO TRY SOMEONE NEW
For 20 years physician Mike Brown has been the popular, centrist mayor of Grand Forks. Brown took special pride in the city’s cultural development. Meanwhile, there was a growing sense among residents that the Grand Forks economy was, at best, going sideways and falling behind the state’s other larger cities. The retail core in Grand Forks was particularly decimated. Brandon Bochenski, a political newcomer, entered the race for mayor this year emphasizing smaller government and lower taxes. He is a residential real estate developer and former hockey pro. Bochenski became the state’s biggest surprise in the spring elections by winning over half the votes in a three-way competition.
GOODBYE NEWSPAPERS
It was going to happen anyway, the pandemic just hastened the downsizing of North Dakota newspapers. At the end of the year, the Bismarck Tribune was the only paper printed seven days a week and delivered by carrier. The Forum papers eliminated carriers and are printing only two days a week using mail delivery. The Minot Daily News is delivered by mail and no longer has a Sunday paper. All offer online and E-versions of their paper. Weekly papers in smaller communities are steadily going digital, consolidating or quitting. Why are they still called papers?
STILL ON BUDGET
The Forum says the 2020 census will show ND has become three different economies. The four largest cities still have the bulk of population and GDP growth, nine Oil Patch counties are growing, but 39 counties are losing population. The ag industry, which has been weak for a number of years, showed some life this year with good production and stronger prices. The oil industry tanked at beginning of the pandemic, but now has stable but lower production levels and prices. However, Oil Patch counties are hurting and have high unemployment. Despite these cross currents, state government expects to meet its forecast for the two-year budget period which ends in June 2021.
DakotaBeacon