Central ND News

North Dakota’s oil and gas industry had a $48.8 billion economic impact in 2023—marking a $6.2 billion jump from 2021. 

That figure is according to a study conducted by North Dakota State University researchers Dean Bangsund and Nancy Hodur. 

In March, Bangsund joined Gov. Kelly Armstrong and North Dakota Petroleum Council President Ron Ness at a press conference announcing the economic impact of North Dakota's oil and gas industry. 

According to Bangsund, the oil and gas industry supported roughly 30,100 people in 2023, with the number increasing to 68,830 when indirect jobs related to the industry were included. 

The study notes that gross business volume—which combines direct sales from the oil and natural gas industry with related economic activity—reached a record $48.8 billion in 2023. This total represents over 30% of North Dakota’s entire economic output. 

“Nearly $49 billion is a huge number and shows how important this industry is to our state’s overall well-being,” Bangsund said.

“The oil and natural gas industry continues to be a major force in North Dakota’s economy, benefiting communities across our great state,” Armstrong said. “Taxes and royalties paid by the industry support state and local investments in infrastructure, schools, communities, tax relief and the Legacy Fund, among other areas.”

According to Ness, the oil and gas sector generates over half of all state tax revenue and supports thousands of well-paying jobs.

Another study commissioned by the Western Dakota Energy Association (WDEA) and the North Dakota Petroleum Foundation found that oil and gas tax revenues from 2008 to 2024 exceeded $32 billion. These funds have provided $5.9 billion for local communities and infrastructure, $2.36 billion for K-12 education, $1.75 billion for water and flood control projects, $1.24 billion for property tax relief, and $8.5 billion to the state’s Legacy Fund, ensuring long-term financial benefits for North Dakota residents.

To provide further insight into NDSU's findings:

Economic Impact of North Dakota’s Oil and Gas Industry (2023)

Metric	Value	Description
Gross Business Volume	$48.8 billion	Total economic activity generated by oil and gas industry in ND
Direct Employment	30,100 jobs	Number of people directly employed by the oil and gas sector
Indirect Employment	33,730 jobs	Jobs supported indirectly through related industries
Total Employment	63,830 jobs	Sum of direct and indirect employment
Labor Income	~$5 billion	Total wages, salaries, and benefits paid
State and Local Tax Revenues	Over $3.8 billion	Taxes generated by oil and gas activities
Legacy Fund Contributions	Over $8.58 billion (since 2008)	Portion of tax revenue allocated to state’s Legacy Fund
Cumulative Tax Revenues	Over $32 billion (since 2008)	Total tax revenue collected from oil and gas sector since 2008