MBI Energy Services Leads North Dakota’s Booming Oil Industry

In June, North Dakota produced almost 20 million barrels of oil and overtook Alaska as the second-largest producer in the United States. As North Dakota once more experiences growth thanks to the Bakken Shale development, MBI Energy Services is more than equipped to lead the way.

MBI Energy Services (formerly Missouri Basin Well Services) is a veteran when it comes to a boom in this oil field, and is ready to respond quickly and safely to the oil and gas industry’s demand with local, proven expertise. Since 1979, MBI, based in Belfield, N.D., has been the local oilfield service provider committed to reducing risk and enhancing production.

“With over 33 years of experience, what differentiates us is our commitment to providing lasting, safe solutions to both our community and our customers,” says Tony Hauck, MBI CFO. The $600 million, privately held company is owned by CEO Jim Arthaud and his brother Jody Arthaud.

MBI Energy Services has grown strategically in the past few years to meet the demands of top oil companies. It has grown both its workforce and infrastructure, increased its footprint inside and outside of North Dakota and dramatically expanded its services – all while living by its commitment to its safety and environmental program.

People and Infrastructure

As oil demand in North Dakota continues to escalate, MBI will continue to invest heavily in its employees to accommodate the demand. Over the past few years, its workforce has grown from 200 to more than 1,600 employees – with the vast majority of positions in oil, sand and water procurement. With North Dakota having the lowest unemployment in the United States – a little more than 3 percent – MBI finds innovative and proactive solutions to overcome its local hiring challenge, such as competitive salary, health benefits and company housing.

As MBI increases its workforce, employees must be trained to perform work in a safe and efficient manner. The culture of MBI and many of its customers is that safety is the No. 1 priority.

“Safety is an integral part in MBI Energy Services’ company culture and is taken very seriously,” Hauck states. As a result, more than 10 percent of MBI’s workforce is dedicated solely to safety.

Because of the company’s deep-rooted commitment to its customers, workforce and community, MBI has developed an industry-leading field and administrative safety program, which includes training, field management and continuing education.

This rigorous program consists of six weeks of classroom, on-the-job training and field oversight. MBI is in the process of building a state-of-the-art safety, driver training and workover rig training facility to continue to drive the culture of compliance.

Along with the growth of its workforce, MBI has vastly increased its infrastructure to meet oil demand. MBI has grown from 100 company-owned trucks to more than 500 and added another 500 subcontractors in the last five years. Because of this increase in people and equipment, MBI currently is hauling more than 100,000 barrels per day in fresh and produced water alone. In addition, MBI currently has more than 15 workover rigs and 15 wireline trucks.

Strategically Positioned

In conjunction with the growth of its workforce and equipment, MBI Energy Services has expanded into new locations based on its major customers’ needs. MBI has increased its footprint inside and outside of North Dakota. Within North Dakota, MBI Energy Services now has eight offices, in addition to its headquarters in Belfield, which include: Dickinson, Beulah, Lignite, Minot, Ross, Watford City, Westhope and Williston. With these strategic locations, MBI Energy Services is poised to provide quality solutions to customers in western North Dakota.

Outside of its home state, MBI Energy Services has expanded into new areas including Texas in the Eagle Ford play, Pennsylvania in the Marcellus play and Wyoming in the Niobrara play.

“Our office expansion is determined by demand for our services,” Hauck states. “With a history of quality and safe services, we are expanding both as a result.”

In the past year, MBI Energy Services has been quite busy with its services expansion, which now includes fluid management, wireline units, workover rigs and fishing and rental services.

Expanded Services

“MBI Energy Services is proud to be North Dakota’s largest oil- and water-hauling company – having fluid management heavily tied to our service offerings,” Hauck says. “Having added well services and rentals allows us to offer our customers a complete package of services to meet diverse needs.”

MBI Energy Services is well-positioned to meet all segments of the oil well production cycle. It exclusively owns and operates 28 salt water disposal wells all over western North Dakota. MBI has also invested millions of dollars in technology to increase its efficiency and performance. It currently is in the process of integrating hardware and software in all hauling trucks, which will enhance safety and provide operation reports and paperless billing for its customers.

Future Growth

North Dakota’s Bakken region has seen unprecedented growth in the past few years that will continue for many years to come. Currently, approximately 200 drilling rigs are in North Dakota. Analysts say as many as 300 more could be added to the Bakken and Three Forks plays in the next five to seven years.

Innovation and evolution in technology will continue to keep MBI at the top of the list of service providers in the North Dakota region. EMI