Oil, gas industry has huge impact on state’s economy
By Neal A. Shipman
Farmer Editor
The state of North Dakota is hoping that two new studies will help them convince federal policy makers of the importance of the state’s multibillion oil and gas industry on the state and local counties and communities.
“These studies underscore the critical importance of the oil and gas industry to our state’s budget, economy and communities, as well as the need for state and federal policies that encourage responsible development of our abundant mineral resources,” Lt. Gov. Brent Sanford said during a press conference with those who conducted the studies.
The studies showed that the oil and natural gas industry in North Dakota accounted for more than $40 billion in gross business volume, nearly 60,000 jobs and over $3.8 billion in state and local tax revenues in 2019.
North Dakota State University researchers Dean Bangsund and Nancy Hodur studied the economic contribution of oil and gas exploration, extraction, transportation, processing and capital investments in 2019, the most recent data available. Similar studies have been conducted every two years since 2005.
Their findings show North Dakota’s oil and gas industry directly employed nearly 24,000 people in 2019, while economic activity from the indirect and induced effects of the industry supported an additional 17,000 and 18,000 jobs, respectively, for a total of 59,100 jobs attributed to the industry. Employment compensation, which includes wages, salaries and employee benefits, was estimated at $4.5 billion.