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For oil field crews, company brings upgraded housing
The name “man camp” doesn’t exactly instill imagery of luxurious hotel accommodations.
But, as the West Texas oil patch booms again, so does the need for temporary worker housing in remote Permian Basin locations.
The leaders of The Woodlands-based Target Logistics admittedly cringe at the “man camp” name made infamous in isolated North Dakota locales across the Bakken Shale. They prefer the corporate-sounding “turnkey workforce lodge,” or something more akin to a small workforce village.
“Years ago, it was precisely a camp,” Target Logistics President and CEO Brad Archer said, in some cases offering little more than tents. “Youjusttake a body and put it in there. We have some competitors who I’d say still do man camps.”
Today, the demand is for quality housing, especially in the right locations. That’s why Target Logistics is buying Houston’s Iron Horse Ranch and its six lodges in the Permian Basin and South Texas’ Eagle Ford Shale.
The privately held company isn’t revealing the acquisition price, but the addition is expected to make Target the energy sector’s largest workforce housing company in the U.S. The deal is expected to close by the end of September.
Target’s specialty is housing that offers a private room to every worker as a way to make the jobs more attractive at a time when oil and gas companies are finding it tough to lure workers to remote locations in the oil patch, said Troy Schrenk, Target senior vice president. In addition, as baby boomers retire, younger workers from the millennial generation are demanding nicer housing that includes private bedrooms and bathrooms.
Still, the units are not exactly luxurious. It’s more like having a dorm room in college sans the annoying roommate.
Target and its top rivals offer game rooms, gyms, swimming pools, saunas, satellite television, wireless internet, housekeeping, laundry services and, most importantly, three meals a day. At the same time, there are strict rules governed by the energy companies footing the bill — no alcohol, no drugs, no firearms.
“Safety is not a 12-hour culture when they’re on the drill site,” Schrenk said. “We’re focused on the other 12 hours .”
The oil bust crippled the accommodations business just like everything else, shrinking the industry by about 50 percent and leaving lots of vacant worker camps.
Target is busy again and looking to add facilities in the Permian, but plenty of vacancies remain in the Bakken.
As with all real estate businesses, timing and location are key. That’s why Target has such a strong focus on the Permian Basin, which is booming like no other oil field. The Permian now accounts for 375 active drilling rigs, which is nearly half of all the nation’s oil rigs. The next most active area is Texas’ Eagle Ford Shale with 78 rigs.
“Growing in the Permian Basin was at the top of our list. It took us a while to pull it off, but we’re there,” Archer said. “It’s been busy. The need is there for more of our facilities. We need to continue to grow in the Permian.”
“Growing in the Permian Basin was at the top of our list. It took us a while to pull it off, but we’re there.” Brad Archer, Target Logistics president and CEO