In North Dakota's oil capital, optimism abides despite price slump

By Ernest Scheyder WILLISTON, N.D. (Reuters) - Business leaders in the capital of North Dakota's oil boom say they are optimistic the regional economy will stand up to slipping crude prices, confident that the clock can't be turned back for one of the fastest-growing parts of the United States. The positive outlook contrasts with the pervasive gloom settling over the No. 2 U.S. oil producer after a plunge of more than 60 percent in crude prices since June. Wall Street has grown anxious that real estate, retail and other investments in the frontier communities that served as anchor outposts for the boom will feel the brunt of cheap oil. Yet hospital and bank executives, attorneys and oil service companies, among scores of others, showed little sign of anxiety on Thursday as they gathered for the Williston Area Chamber of Commerce's annual meeting and awards banquet. The banquet, which costs $55 per plate, sold out its 350 seats a month ago. Horse-trading for tickets was rampant. "We're playing in the global oil markets, and this is how it works," said Scott Meske, the chamber's president. "In the long term, the oil will still be here. And we will, too." In a seeming paradox, many executives interviewed said they welcome the slowdown as an opportunity to curb rampant oil patch inflation and allow Williston and nearby communities to catch their collective breath. For example, a typical one-bedroom apartment in Williston rents for about $2,500 (1,667 pounds) per month, parallel with prices in New York and a level many business leaders find unrealistic and unsustainable. The city's Mercy Medical Center expects its emergency room to have the highest number of visitors, again, for January. To be sure, some businesses are anxious. Companies that supply oilfield service providers Halliburton Co and Baker Hughes Inc , which plan to lay off thousands globally, have seen demand slow, and have thus laid off staff. Industrial supply companies say Nabors and other drillers they contract with are honoring commitments, for now, but walk-in sales have slowed. Yet employers are still looking to fill more than 2,500 jobs in the state's oil patch. "Oil goes up, oil goes down. That's what commodities do," said Susan Spencer, chief executive of U.S. Pressure Test, a subcontractor for hydraulic fracturing services. "What this really is, is an opportunity for us all to raise the bar for our own companies." (Reporting by Ernest Scheyder; Editing by Clarence Fernandez)