Continental Resources Impact on Downtown OKC

[OklahomaNick]

I have read all kinds of facts and figures of Continental Resources looking to triple their work force by 2015. Devon will begin moving employees into their new tower in a couple months and CR is in the early hiring / relocating stages of their employees into the old Devon Building.

I searched and did not find a thread directly dedicated to CR's impact on downtown Oklahoma City. What issues are going to crop up with them moving in? What will the positive impact be? How long until they too outgrow their space? Will they be as active in the community as Chesapeake, Devon, and SandRidge?

Please post your comments, opinions, and relevant news to their company growth.

[OklahomaNick]

Harold Hamm CEO of Continental Resources was recently interviewed on NBC's Rock Center.
The interview is regards to the fast growth of the Bakken Shale in North Dakota, but all this growth will have a huge effect on Continental Resources and their growth as a company. Very Interesting..

http://www.msnbc.msn.com/id/21134540...12911#45112911

[Dustin]

Harold Hamm CEO of Continental Resources was recently interviewed on NBC's Rock Center.
The interview is regards to the fast growth of the Bakken Shale in North Dakota, but all this growth will have a huge effect on Continental Resources and their growth as a company. Very Interesting..

http://www.msnbc.msn.com/id/21134540...12911#45112911

O_o

I'm moving to North Dakota!!! lol!

[G.Walker]

I honestly think that CR moving into the old Devon headquarters is just temporary until they build some new digs! I wouldn't be surprised if they started constructing a new skyscraper in 2014, so it would be completed by 2016-17!

[Bellaboo]

I honestly think that CR moving into the old Devon headquarters is just temporary until they build some new digs! I wouldn't be surprised if they started constructing a new skyscraper in 2014, so it would be completed by 2016-17!

I totally agree. They are also heavy hitters in the Mississippi limestone play in northern Oklahoma (which some claim will rival the Bakken).

CR will be active in the community, Harold Hamm already donated millions to the OU health science center, I think for diabetes research ?

[venture]

O_o

I'm moving to North Dakota!!! lol!

It is amazing the impact it is having up there. That state is going to see so much growth it is crazy. Now if only similar finds could be located elsewhere in the Midwest/Rustbelt to help get their economies going again.

[Just the facts]

I just hope they can manage their growth. I cringed at the thought of a modular home on more than acre. The oil drilling isn't going to last forever so whatever gets built will need to be sustainable without requiring new growth to pay for it.

[ou48A]

. Now if only similar finds could be located elsewhere in the Midwest/Rustbelt to help get their economies going again.

Major new finds have been found and they are now starting to help their states economies.
These are very large domestic energy sources



Check out the Marcellus shale
http://oilshalegas.com/marcellusshale.html




Then checkout the Utica Shale in Ohio
http://www.rigzone.com/news/article.asp?a_id=111731

Ohio isn't a new player in America's oil and gas industry, but it is increasingly becoming a key player in the Utica shale formation. Termed "the shale gale" by some economists, untapped natural gas from shale is one of the most recently talked about energy developments, with most of that focus targeting Ohio.

Utica Shale, a rock unit located a few thousand feet below the Marcellus Shale, has the potential to become an enormous natural gas resource. Cal Dooley, American Chemistry Council President, recently said at an energy summit hosted at Ohio State University, that

at a minimum this form of play could supply at least 100 years of natural gas with the potential of producing up to 200 years.


This undeveloped play could provide Ohio and its inhabitants with tremendous economic opportunity. According to an Economic Impact study, conducted by Kleinhenz & Associates for the Ohio Oil & Gas Energy Education Association, the projected impact from capital investments for the Utica Shale development will be responsible for more than 204,000 jobs created or supported by 2015 due to exploration, leasing, drilling and pipeline construction.

Additionally, because of the pace of development, economic output will increase by more than US $22 billion and increase wages by $12 billion by 2015 (this is attributable to wages, salaries and personal income). In total, oil and gas producers are expected to spend $34 billion in exploration and development, pipelines, royalty payments to landowners and other leasing expenditures.

Ohio's oil and gas industry association partnership, consisting of the Ohio Petroleum Council, a division of the American Petroleum Institute; the Ohio Oil & gas Association; the Ohio Oil & Gas Energy Education Program; Energy-in-Depth Ohio; and JobsOhio, held a press conference last month discussing the state's potential in job creation and energy production.

This conference was held for the associations to announce their industry partnership in working to create more jobs in Ohio, contribute to additional government revenues, and increase U.S. energy security directly to policymakers. The organizations hope that by responsibly developing this controversial play, all Ohioans looking for economic opportunity and energy security will benefit.

The said economic impact study was discussed along with API's national report, "U.S. Supply Forecast and Potential Jobs and Economic Impacts," conducted by Wood Mackenzie.

Wood Mackenzie predicts that U.S. production will grow from 18.5 MMboed in 2010 to 22.2 MMboed in 2030 given the current U.S. policy and regulatory environment. The 20-percent increase will allow the country's energy sector to create 1.4 million jobs and generate $800 billion in government revenue. This revenue will be primarily driven by unconventional plays.

Furthermore, the development of the resources will be used for gas consumption, as power for facilities, and as a primary raw material to make ingredients that are necessary in 96 percent of domestically produced manufactured goods, stated Dooley.

"Affordable, stable supplies of domestic natural gas, especially from the nearby Marcellus shale, have been a game changer for U.S. chemical manufacturers, giving them a global competitive edge for the first time in decades," Dooley commentated in the Charleston Daily Mail newspaper.

The shale market is also benefiting the steel industry. Expansions at steelmakers in Ohio are occurring because the commodity is used in "fracking" or the drilling for natural gas in shale basins. For instance, the U.S. Steel Corporation is nearing completion of upgrades at the Lorain Tubular Operations in Lorain, Ohio (a facility already capable of producing small and large diameter pipes).

"The project will improve the facility's cost competitiveness, as well as increase the company's ability to serve the oil and gas costumers, including those who are engaged in developing shale natural resources," said Erin DiPietro, Senior Public Affairs Representative at United States Steel Corporation. The facility is near start-up, and it is projected to create 100 full-time jobs.

The Timken Company is also considering upgrading its steel plant in Canton, Ohio at a projected cost of $225 million.

"If the expansion commences, it is expected to create a substantial ripple effect in the community," said Lorrie Paul Crum, Manager of Global Media and Strategic Communications at Timken.

This ripple economic effect is also trickling down to landowners. Reportedly, many area owners are being approached about leasing their land for oil and gas development. Belmont County has seen an influx of abstractors searching the area for mineral owners in the county recorder's office.

Casey Jenkins, a staff reporter for the Intelligencer/Wheeling News, reported that leasing companies have recently paid mineral owners as much as $60 million to lease their land. These abstractors are said to work for several companies that are pursuing natural gas from the Utica Shale.

While many benefits seem to come from the development of the Utica Shale, some are hesitant about moving forward. From environmental issues to the lack of actual hands-on experience with shale development, many wonder if Ohio is ready for the brewing onslaught.

When asked this question, David Mustine, General Manager for Energy for JobsOhio said, "We are conducting an open dialogue with all that will be affected by the development of the Utica Shale. We are communicating with local and regional leaders, as well as regulatory authorities and businesses looking to come to Ohio."

[mugofbeer]

As shown above, there have been discoveries elsewhere but they blame everything from the Penn State sex scandal to drought on the fracking. They are shooting themselves in the economic foot

[OklahomaNick]

Thanks for the info on the Marcellus and Utica Shales ou48A.
I think CHK is heavily invested in the Marcellus..

[ou48A]

Thanks for the info on the Marcellus and Utica Shales ou48A.
I think CHK is heavily invested in the Marcellus..

You’re welcome.
All this is great news for these Oklahoma based Corparations.

Chesapeake (CHK) is involved in the huge Marcellus shale play.
But CHK is aggressively moving into the crude oil side of the Utica Shale.



Click here to read more.
http://seekingalpha.com/article/3071...us-on-steroids

[OklahomaNick]

Is there anyway for this thread to get moved back to the "Urban Core" category where it was posted?
This was intended to discuss the impact on downtown OKC, and being put in the "Local Business" category lumps it in with posts where users are asking who in town does good transmission work!

[MDot]

Hmmm....

[Bellaboo]

Okay,

Downtown OKC will boom even more with CR... They are the big play guys along with SandRidge and Chesapeake in the Mississippi limestone play in Northern Oklahoma and Southern Kansas....

This is going to be huge, some guess as big as the Bakken formation in the Williston basin. They have been hitting wells that are exceeding 3,000 bpd..just in the last few months......that's huge. Chesapeake has entered full swing into this play to offset the lower natural gas prices.

SandRidge has even mentioned that this formation is what is spurring their growth the most.

[Bellaboo]

Lots of information in this article from the JR when this was announced.

http://journalrecord.com/2011/03/22/...oklahoma-city/

[Fantastic]

Is there anyway for this thread to get moved back to the "Urban Core" category where it was posted?
This was intended to discuss the impact on downtown OKC, and being put in the "Local Business" category lumps it in with posts where users are asking who in town does good transmission work!

Agreed.

As for the impact of CR on downtown, I am very excited. Devon occupies something like seven buildings (I don't know the exact number), and moving into thier own building leaves a huge hole in downtown. Continental coming in to fill some of that space is excelent for the city. With Continental's projected growth, all of that space could be filled in 5 years. More optimistically, it is possible that that space left behind by Devon COULD be filled BEFORE Continental has a chance to expand, moving up the need to create more space. (Note: that is an optimistic possibility at best)

[lasomeday]

Continental will probably fill the Devon Building once they move from Enid. They are also leasing office space in Corporate Tower and Oklahoma Tower. It will probably be two or three years until they need their own building. Their hiring makes Chesapeake look conservative.

[Bellaboo]

Another possibility here is the relocation of Hamm's other 3 companies based in Enid. Hamm & Phillips, the oil field service arm of CRI, Hiland Holdings and Hiland Partners. These seperate firms shared offices with Continental, and could likely relocate to OKC in the future.

This is just pure speculation on my part.

[OklahomaNick]

They are also leasing office space in Corporate Tower and Oklahoma Tower.

I believe those are just temp/transition offices for CR while Devon transitions to their new space starting at the first of the year.
I would love to see them out grow their space sooner than expected and balance out our skyline with another skyscraper!

[OklahomaNick]

Another possibility here is the relocation of Hamm's other 3 companies based in Enid. Hamm & Phillips, the oil field service arm of CRI, Hiland Holdings and Hiland Partners. These seperate firms shared offices with Continental, and could likely relocate to OKC in the future.

This is just pure speculation on my part.

I do believe Hamm said that he was going to keep several of his other smaller companies in Enid so that community is not completely decimated by the CR departure. It sure makes logistical sense to move them all to OKC but keeping some there might be a PR move for him. From what I hear Enid really treated them well, they just couldn't get the growth they were wanting and were getting killed by CHK, Devon, and SR as far as recruiting the same employees.

[Bellaboo]

I believe those are just temp/transition offices for CR while Devon transitions to their new space starting at the first of the year.
I would love to see them out grow their space sooner than expected and balance out our skyline with another skyscraper!

Think about this - by 2015, they project 750 employees in OKC. They bought the old Devon tower, it has 19 floors, but I believe a law firm has the top 4 floors. That leaves 15 floors for them to occupy. Divide 15 into 750 and that has it at 50 people per floor on average. That would be a very dense employee setup in that building considering conference rooms and office configuration. They could be in the same situation Devon is currently in within 3 years....

[Bellaboo]

I do believe Hamm said that he was going to keep several of his other smaller companies in Enid so that community is not completely decimated by the CR departure. It sure makes logistical sense to move them all to OKC but keeping some there might be a PR move for him. From what I hear Enid really treated them well, they just couldn't get the growth they were wanting and were getting killed by CHK, Devon, and SR as far as recruiting the same employees.

You are right on with the problem recruiting employees. Also, most of the servicing is in the field, so quite a number of employees need to be remote.

[OklahomaNick]

I believe a law firm has the top 4 floors.

Crowe & Dunlevey has 4 floors totaling 65,652 sq./ft. not including the basement (3,780sq./ft.)
Their lease is up in 2015 (no word on renewal)



If they don't renew Crowe & Dunlevey's lease then they will have a shade over 301,000 sq./ft. divided by 750 employees is around 400 sq./ft. per person which is pretty dense. Let's hope they grow sooner than expected!

[Bellaboo]

Crowe & Dunlevey has 4 floors totaling 65,652 sq./ft. not including the basement (3,780sq./ft.)
Their lease is up in 2015 (no word on renewal)

If they don't renew Crowe & Dunlevey's lease then they will have a shade over 301,000 sq./ft. divided by 750 employees is around 400 sq./ft. per person which is pretty dense. Let's hope they grow sooner than expected!

Nice model cutaway there !

[BG918]

The Mississippian (southern KS/northern OK) and Niobrara (northwest CO/southeast WY/southwest NE) both have potential to rival the Bakken and Eagle Ford shale plays for oil production. Cont Resources is heavily involved in both the Bakken and Mississippian. Chesapeake is heavily involved in both.