The results of North Dakota State University’s most recent Economic Impact Study are in, and it’s not surprising that the oil and natural gas industry continues to be a major force in North Dakota’s economy. Nowhere is this clearer than in the 2023 legislature. Taxes paid by the oil and gas industry account for more than half of all taxes levied by the state each year. The billions of dollars this industry pays out each year help fund everything from education to road construction to flood control to tax breaks.
And the impact of the taxes and royalties paid by our industry touches every corner of our state. Those dollars end up in counties and communities across North Dakota. In fact, every single county in our state receives funds from the oil and natural gas taxes and royalties through special funds set up by the legislature. The $8 billion ND Legacy Fund, funded entirely by oil taxes and revenues, ensures North Dakota will benefit from our industry now and for generations to come.
The importance of oil and natural gas in North Dakota doesn’t end with the taxes we pay. We also employ almost 50,000 people in the country. These are well-paying jobs with a total annual payroll of almost $4 billion. Our industry has also invested, and will continue to invest, billions of dollars in building the infrastructure necessary to do business in our state to ensure our citizens benefit from North Dakota’s God-given resources for decades to come.
We continue to successfully balance the need to develop our state’s resources while minimizing the impact on our wildlife, air and land. We are extracting record amounts of natural gas to reduce flaring. New technologies and efficiencies allow us to produce oil and natural gas with less impact on the environment. It’s safe to say that North Dakota now produces the cleanest oil drum in the world. In fact, a Bowman County oil company has begun injections, which use captured carbon emissions to improve oil recovery, to breathe new life into an aging oil field.
North Dakota residents should also be proud of the role our state plays in world affairs. The war in Ukraine is a fond reminder of the importance of energy security and how vital North Dakota is to providing our country and the world with secure, abundant, efficient and affordable energy. Additionally, rather than buying oil from unfriendly nations, North Dakota is helping to keep jobs and energy spending right here at home, where they belong.
Despite COVID, a federal administration hostile to fossil fuels, and the shaky global economy our industry has faced in recent years, North Dakota’s oil and natural gas industry is strong. The work we do is incredibly important to our state, our nation, and the world. We have proven to be resilient and are well prepared for the challenges of the future.
The full study results can be found on the North Dakota Petroleum Foundation website at https://ndpetroleumfoundation.org/2021-economic-contributions/.
Ron Ness is President of the North Dakota Petroleum Council.
This letter does not necessarily reflect the opinion of the forum editors or the owner of the forum.
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