Central ND News

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

"The oil and natural gas industry continues to be a major force in North Dakota’s economy, benefiting communities across our great state," stated Armstrong. He emphasized the role of taxes and royalties paid by the industry in supporting state investments in infrastructure, schools, communities, tax relief, and the Legacy Fund.

Researchers Dean Bangsund and Nancy Hodur from NDSU analyzed the economic impact of oil and gas activities including exploration, extraction, transportation, processing, and capital investments. Their study shows that the industry directly employed 30,100 people while indirectly supporting an additional 33,730 jobs through related economic activities.

Total employment compensation was estimated at $5 billion for wages, salaries, and benefits. The gross business volume reached an all-time high of $48.8 billion—a $6.2 billion increase from 2021—accounting for over 30% of North Dakota's overall gross business volume.

Bangsund noted the significance of this figure: "Nearly $49 billion is a huge number and shows how important this industry is to our state’s overall well-being."

Ron Ness of the North Dakota Petroleum Council highlighted that more than half of all state taxes are paid by the oil and natural gas sector which provides over 63,000 well-paying jobs. "Thanks to our industry’s continued investment in technology, innovation, and infrastructure," Ness added.

A separate study for the Western Dakota Energy Association (WDEA) indicated that tax revenues from fiscal years 2008 to 2024 surpassed $32 billion. These funds have supported various sectors including local communities ($5.9 billion), K-12 education ($2.36 billion), water projects ($1.75 billion), property tax relief ($1.24 billion), with $8.5 billion directed into the Legacy Fund.

Geoff Simon from WDEA remarked on these impacts: "The impact of the oil and natural gas industry can be seen throughout the state... every county and community has benefited."