ECONOMIC AND SOCIAL IMPACTS OF RAPID SHALE OIL DEVELOPMENT IN WESTERN NORTH DAKOTA A Dissertation Submitted to the Graduate Faculty of the North Dakota State University of Agriculture and Applied Science By Wannakuwatte Mitiwaduge Felix Nirmal Fernando In Partial Fulfillment of the Requirements for the Degree of DOCTOR OF PHILOSOPHY Major Program: Natural Resources Management December 2015 Fargo, North Dakota North Dakota State University Graduate School Title ECONOMIC AND SOCIAL IMPACTS OF RAPID SHALE OIL DEVELOPMENT IN WESTERN NORTH DAKOTA By Wannakuwatte Mitiwaduge Felix Nirmal Fernando The Supervisory Committee certifies that this disquisition complies with North Dakota State University’s regulations and meets the accepted standards for the degree of DOCTOR OF PHILOSOPHY SUPERVISORY COMMITTEE: Dr. Dennis Cooley Chair Dr. Gary Goreham Dr. Robert Hearne Dr. Jack Norland Approved: November 25, 2015 Dr. Edward (Shawn) DeKeyser Date Department Chair ABSTRACT This dissertation comprises of five qualitative and exploratory studies. The studies focus on the social and economic impacts of rapid shale oil development, which is colloquially referred to as an “oil boom” on the communities and its members in western North Dakota. The dissertation presents a detailed exploration of the impacts and implications of the boom on community values and attitudes, quality of life, and community development. Impact of the boom on each topic is presented as an independent article or chapter. The data for the dissertation was collected through open-ended, face-to-face interviews. The findings highlight the opportunities created by the boom, barriers inhibiting community development, and the solutions necessary to achieve the community development potential created by the economic activity of the oil boom. iii ACKNOWLEDGEMENTS I thank my adviser, Dr. Dennis Cooley for all the guidance, direction, support, and patience in making my graduate program and this dissertation a constructive and a powerful learning experience. Thank you to my committee members for their time, effort, and assistance throughout the program, you have always been there when I needed clarity and direction. Finally, this whole process wouldn’t have been possible without the encouragement of my wife Tania, who has supported and done everything she can from the first to the last day. I would also like to thank the North Dakota Humanities Council, Northern Plains Ethics Institute, and the Dickinson Research Extension Center for all the funding and logistics support. iv DEDICATION This disquisition is dedicated to my wife Tania who supports me in all the crazy dreams I pursue in my life. v TABLE OF CONTENTS ABSTRACT ................................................................................................................................... iii ACKNOWLEDGEMENTS ........................................................................................................... iv DEDICATION ................................................................................................................................ v LIST OF TABLES .......................................................................................................................... x LIST OF FIGURES ....................................................................................................................... xi LIST OF ABBREVIATIONS ....................................................................................................... xii LIST OF APPENDIX TABLES .................................................................................................. xiii 1. PROBLEM STATEMENT ........................................................................................................ 1 1.1. Introduction .......................................................................................................................... 2 1.2. Overall Methodology ........................................................................................................... 7 1.3. Ethical Issues ........................................................................................................................ 9 1.4. References ............................................................................................................................ 9 2. RESIDENT ATTITUDES TOWARD OIL FRACKING IN RURAL NORTH DAKOTA: THE ROLE OF COMMUNITY VALUES IN ATTITUDE FORMATION ........ 10 2.1. Abstract .............................................................................................................................. 10 2.2. Introduction ........................................................................................................................ 11 2.3. Review of Literature ........................................................................................................... 13 2.3.1. Attitudes and Values ................................................................................................... 14 2.3.2. Conceptions of Place ................................................................................................... 16 2.3.3. Impacts/Changes of Rapid Energy Development........................................................ 20 2.4. Methodology ...................................................................................................................... 24 2.5. Findings .............................................................................................................................. 28 2.5.1. Sense of Community (SOC) ....................................................................................... 30 2.5.2. Attachment to Community (ATC)............................................................................... 35 2.5.3. Dependence on Community ........................................................................................ 39 vi 2.6. Discussion .......................................................................................................................... 45 2.7. Conclusion .......................................................................................................................... 49 2.8. References ........................................................................................................................... 49 3. AN OIL BOOM’S EFFECT ON QUALITY OF LIFE (QOL): LESSONS FROM WESTERN NORTH DAKOTA .............................................................................................. 58 3.1. Abstract .............................................................................................................................. 58 3.2. Introduction ........................................................................................................................ 59 3.3. Review of Literature ........................................................................................................... 62 3.3.1. What is QoL? ............................................................................................................... 62 3.3.2. QoL in a Rural Community ......................................................................................... 68 3.3.3. Impacts of Rapid Energy Development or “Booms” .................................................. 71 3.3.4. Impacts of Energy Development on Different Stakeholder Groups ........................... 75 3.4. Methodology ...................................................................................................................... 78 3.5. Findings .............................................................................................................................. 82 3.5.1. QoL before the Boom .................................................................................................. 85 3.5.2. QoL Changes Instigated by the Boom......................................................................... 87 3.6. Discussion ........................................................................................................................ 104 3.7. Conclusion ........................................................................................................................ 109 3.8. References ........................................................................................................................ 109 4. SOCIO-ECONOMIC SYSTEM OF THE OIL BOOM AND RURAL COMMUNITY DEVELOPMENT IN WESTERN NORTH DAKOTA ......................................................... 118 4.1. Abstract ............................................................................................................................ 118 4. 2. Introduction ..................................................................................................................... 119 4.3. Review of Literature ......................................................................................................... 124 4.3.1. Systems Theory and Social Network Analysis ......................................................... 124 4.3.2. Community Development Processes as a System ..................................................... 128 vii 4.4. Methodology .................................................................................................................... 131 4.5. Findings ............................................................................................................................ 135 4.5.1. Basic Boom Cycle ..................................................................................................... 138 4.5.2. Housing