Last updated on 2014.07.24
"Under-explored" appears frequently in press dealing with South Dakota and oil exploration. State officials are doing a lot of petro-wishing, but geology and economics are still working against them. Heck, we can't even find the right sand to use in the fracking process—except for maybe one isolated patch of the Black Hills near Hill City where South Dakota Proppants thinks it can mine a million tons of frac-sand a year... and turn the central Black Hills into a dusty freeway for trucks thundering out to Wyoming and the Bakken. Yay.
Plenty of folks have made money punching holes in the Black Hills. If we punch more holes across the state and find oil, more folks will make money. But not all of them. Texas is far from under-explored, but the growing petro-wealth still doesn't flow smoothly to the greater good:
...[D]espite the boom, Texas has some of the highest rates of poverty in the nation and ranks first in the percentage of residents without health insurance. Republican leaders have supported tapping the Rainy Day Fund for one-time investments in water and transportation infrastructure, but they have blocked attempts to use the fund for education and other services, arguing that it was designed to cover emergencies and not recurring expenses.
“Despite the bounty of the Eagle Ford, which is considerable and on the whole clearly positive, it is not a rising tide that lifts all boats,” said Ray Perryman, a leading Texas economist and author based in Waco. He noted that Texas had long had a philosophy of limited government and an aversion to spending on social services, an attitude intensified by the current political environment.
“Texas is not a good place to be poor, and there is little political appetite for change,” he said [Manny Fernandez and Clifford Krauss, "Boom Meets Bust in Texas; Atop Sea of Oil, Poverty Digs In," New York Times, 2014.06.29].
It may not hurt to go looking for the spare change dinosaurs may have left in the couch cushions in West River. Then again, it might. But don't let the South Dakota Oil and Gas Association or South Dakota's state government fool you: fracking what little oil we may have won't bring easy, widespread wealth to South Dakota.
p.s.: Hey! Anyone strike oil down in the Precambrian rock by Wasta yet?