Central ND News

The oil and gas industry continues to play a significant role in North Dakota's economy, contributing over $48.8 billion in gross business volume and supporting more than 63,000 jobs in 2023. This information comes from a study highlighted by Governor Kelly Armstrong, researchers from North Dakota State University (NDSU), and industry officials.

Governor Armstrong emphasized the industry's impact on the state: "The oil and natural gas industry continues to be a major force in North Dakota’s economy, benefiting communities across our great state." He noted that taxes and royalties from the industry fund infrastructure, schools, community projects, tax relief, and the Legacy Fund.

Researchers Dean Bangsund and Nancy Hodur from NDSU analyzed the economic contributions of various activities within the oil and gas sector for 2023. Their research indicates that direct employment within the industry accounted for 30,100 jobs. Additionally, indirect and induced economic activities supported another 33,730 jobs. The total employment compensation was estimated at $5 billion.

The industry's gross business volume reached an all-time high of $48.8 billion in 2023—a $6.2 billion increase since 2021—representing over 30% of North Dakota's overall gross business volume. "Nearly $49 billion is a huge number and shows how important this industry is to our state’s overall well-being," said Bangsund.

Ron Ness, president of the North Dakota Petroleum Council, highlighted that more than half of all state taxes come from this sector: "Thanks to our industry’s continued investment in technology, innovation, and infrastructure, oil and natural gas will continue to be a major force in North Dakota’s economy for generations to come."

A separate study conducted for the Western Dakota Energy Association (WDEA) revealed that tax revenues paid by North Dakota's oil and natural gas industry exceeded $32 billion between fiscal years 2008 to 2024. These funds supported local communities with $5.9 billion for infrastructure projects; K-12 education received over $2.36 billion; water and flood control projects were allocated $1.75 billion; property tax relief amounted to over $1.24 billion; while $8.5 billion was contributed to the Legacy Fund.

Geoff Simon, Executive Director of WDEA stated: “The impact of the oil and natural gas industry can be seen throughout the state."