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An Oil Boom’s Effect on Quality of Life (QoL): Lessons from Western North Dakota

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Abstract

This article presents a holistic framework to understand the effect of an oil boom on quality of life (QoL) in western North Dakota. Compared to quantitative QoL studies that focus on cities and urban QoL or studies that compare/contrast QoL between different communities, this descriptive and qualitative article focuses on the heterogeneous QoL perceptions among different stakeholder groups, within a community, in a rural setting, during a period of rapid social and economic transformation. The focus allows for a new way of looking at the significance of changes caused by oil development on QoL of stakeholders in a rural community, which provides a useful lens for studying QoL changes in many other rural communities currently experiencing unconventional oil/gas development in the USA. The framework presented captures the contextual determinants and indicators that constitute QoL in a rural context. The findings show that some significant impacts of the boom (both positive and negative) affect QoL of everyone in the community, while other impacts only affect certain stakeholder groups based on their positioning in the economic/income structure and level of exposure to local inflation. Implications of the findings on community planning and development on ways to improve QoL are presented and discussed.

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Notes

  1. Oil boom: increase in oil drilling activity and the induced secondary and supporting economic activity in other sectors such as housing, infrastructure construction, and related services

  2. Economic shocks were defined as “events that have had a significant impact on local economies (P. 2).”

  3. Allison et al. (1997) also identify QoL as a dynamic phenomenon, where the construct is affected by such factors as adaptation, coping, expectations, and optimism, in which a person’s past and present events coupled with his ability to adjust, change, and his expectations about the future affect the construct of QoL.

  4. Additionally the study used the notion of social capital to denote relationships and interconnections. Social capital included residents bonds to others as well as residents bonds to local institutions including work (service and fraternal organizations, recreational groups, political and civic groups, job-related organizations, church-related groups, or other).

  5. Some of these QoL indices such as Physical Quality of Life Index (Morris 1979), Human Development Index (UNDP 1990), and Dasgupta and Weale (1992) are macro in nature and useful for comparison of QoL between countries and other large groups and not within the scope of this article.

  6. Cox et al. (1992) also recommends the use of context-specific scales in assessing QoL.

  7. Similarly, Sirgy et al. (2010) articulated a measure of community well-being based on the notion that community residents perceive QoL based on the conditions in various life domains (e.g., family, social, leisure, health, financial, cultural, consumer, work, spiritual, and environmental domains).

  8. The third question focuses on how people perceive risk, vulnerability, opportunities, social exclusion, crime, and conflict and how these perceptions change over time.

  9. But, all these studies focus on between-community comparisons.

  10. For a discussion of QoL in recreational-based rural areas, see Deller et al. (2001).

  11. Arbuckle and Kast (2012) contend that rural areas in Midwest and Great Plains have experienced long-term stagnation or decline in well-being (also punctuated by crises, e.g., the Farm Crisis of the 1980s), where processes of agricultural consolidation and restructuring and loss of manufacturing jobs have led to population loss and concomitant declines in ability to provide necessary services among municipalities.

  12. Gemeinschaft values and behavior prevail when social interaction occurs principally on the basis of traditionally of customary familial roles, long-standing obligation, and mutual trust. Comparatively, gesellschaft leads to complex impersonal patterns of social interaction and values that emerge with people’s interests protected formally by contract and law (Gold 1985).

  13. Face-to-face, personally familiar systems based upon sharing mutually valued activities over extended periods

  14. A field of social science and a component of the policy-making process. Social impact assessments (SIAs) are generally anticipatory efforts to project likely impacts before they occur, but empirical SIA work has looked at a broad range of social and cultural impacts. The purpose of SIA studies is to assess the impact of what a project is doing or might do in the future on the QoL in the community (Freudenburg 1986a, b).

  15. Social disruption theory states that communities experiencing rapid growth typically enter a period of generalized crisis and loss of traditional routines and attitudes (Park and Stokowski 2009).

  16. Other impacts on the environment are not within the scope of this article.

  17. As it disturbs the peace and quiet nature of the surroundings

  18. Rural people develop deep bonds toward their environment. During a study by Alter et al. (2010), participants expressed concern about the impacts on the landscape and, relatedly, their desire to live in the area. For many, the rural nature of these areas is the reason they live where they do, and they feared that energy development would permanently degrade the amenities and rural QoL they have come to appreciate (Alter et al. 2010).

  19. Half of the resident landowners in the counties together only control 1.1 % of the land area, and renters had no “voice” at all. Rather, it is the top 10 % of resident landowners, plus outside landowners (both public and private), who are able to make the major leasing decisions that affect the rest of the community. A little less than half (48.9 %) of the lease and royalty dollars in these counties will go to the top ten percent of local landowners, while 39.8 % will go to the public sector or non-resident landowners.

  20. Three of the four indicators of community satisfaction and social integration considered in Brown et al. (2005) either returned to or exceeded pre-boom baseline levels 20 to 24 years after the initial data collection point. As a result, Brown et al. (2005) propose a boom-bust-recovery cycle.

  21. Heiser, J.A. 2012. “Fed up with the oil boom way of life.” Williston Herald. Posed online: January 24, 2012.

  22. Murdock, A. 2011. “Rent prices keep families apart.” Williston Herald. Posted online: December 23, 2011.

  23. Rasmussen, J. 2011. “Service workers need to be able to make a living, and a home, in Williston.” Williston Herald. Posted online: September 9, 2011.

  24. Most people living in temporary housing represent transient workforce. Transient workers work on a schedule where they work for a few weeks and then go back to their home communities or families living elsewhere during days off and holidays. Therefore, these people are in western North Dakota for work and do not become engaged or integrated into the community fabric.

  25. Several participant comments are provided under each stakeholder group to describe the evaluations.

  26. Although other factors that represent individual-level differences such as marital status and health were expressed during the study, participants did not view them as major factors affecting perceptions of QoL and were not considered within the scope of analysis.

  27. Papageorgiou et al. (2005) used similar stakeholder groupings (land owners and rest of community) in a study of QoL and forest values in rural areas. Ren and Liburd (2012) used stakeholder groups to study QoL in a small island context. Zack (2013) developed stakeholder groups by age, sex, race/ethnicity, and educational attainment in a study of health-related QoL. Therefore, contextual-based stakeholder groupings are not novel in studies of QoL.

  28. Factors or sequence of events that have caused increased cost of living including rent are discussed in detail in our other research work on socio-economic system of the boom.

  29. Workers who are in the community for a short period of time and move away or those workers who go back to their home communities during days off and holidays

  30. Four participants who worked in the oil industry were also landlords who owned rented apartments.

  31. Assumes a 40-h week worked the year round. Average hourly wage was $48.33. Source ND Labor Force Intelligence.

  32. City/county government workers, nurses, social service workers, teachers, law enforcement, emergency workers, maintenance workers, etc.

  33. Such as retail, dining, recreation, childcare, and other services

  34. Nine farmers out of the 18 farming and ranching participants of the study owned mineral rights or other lease rights and were included in the entrepreneurs and lease right owners cluster.

  35. Source: ND Labor Force Intelligence

  36. For a detailed discussion on reasons for increase in cost of living, please refer our research on socio-economic system of the oil boom.

  37. If they had benefitted from minerals or lease rights their perception of QoL might be different. This would be an interesting dimension to explore in a future study.

  38. Or housing being paid for or provided by employers

  39. All of the oil industry workers claimed that they received employer-provided housing and, as a result, they did not have to live in rented property.

  40. Participants of Anderson and Theodori (2009) also expressed similar sentiments.

  41. For a more detailed discussion on how lack of affordable housing affects the entire community, refer to our research work on socio-economic system of the oil boom.

  42. In this study, these were expressed in relation to environmental-based recreation and amenities such as hunting and camping. But, there could be issues on pollution, clean air, and water that must be addressed through a separate study.

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Acknowledgments

This research was funded by a grant from the North Dakota Humanities council. Additionally, the authors thank Dr. Kris Ringwall, the Director of the NDSU Dickinson Extension Research Center, for logistics and other support.

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Fernando, F.N., Cooley, D.R. An Oil Boom’s Effect on Quality of Life (QoL): Lessons from Western North Dakota. Applied Research Quality Life 11, 1083–1115 (2016). https://doi.org/10.1007/s11482-015-9422-y

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