Lower natural gas prices through fracking are giving North Dakota manufacturers a competitive edge, writes reporter Jessica Holdman in the Bismarck Tribune. Holdman quotes two NFIB-member businesses in her story.
Here are a few excerpts from the article:
“We use natural gas in our production operations for our powder paint ovens and for firing ceramic brick,” said Chief Operating Officer Joe Rothschiller. “Our annual spending is approximately $206,000 … Lower prices allow us to be more competitive, especially when competing with foreign competition.”
Besides costs of operation, Rothschiller said, Steffes also has adapted to produce oil storage tanks and other products like heater treaters, flares, and cattle guards. He said the company has worked hard to make those products high quality, which has made them in high demand in the Bakken.
“Cheaper energy is all about fracking … We’re the benefactor of that,” said Guy Moos, president of Baker Boy. The company uses natural gas to heat its 135,000-square-foot facility and fire up its ovens, one of which is 65 feet long and 13 feet wide. An oven that large requires 3 million Btus to start and 1.3 million Btus to keep running.
“North Dakota has been very good to us as far as energy,” Moos said, but it has been more in the form of electricity. He said natural gas prices are similar nationwide and as long as companies have access to it, they can benefit from it. Not all states have coal-fired power plants providing cheaper electricity, he said.
You can read the full story here.
