NDSU researcher Dean Bangsund joined Gov. Kelly Armstrong and North Dakota Petroleum Council President Ron Ness on Tuesday, March 11, to discuss the $48.8 billion economic impact of the oil and gas industry in the state.
The press conference at the State Capitol in Bismarck highlighted findings from an NDSU study examining the industry’s contributions to job creation, tax revenue, and overall economic activity in 2023. The study, co-authored by NDSU researcher Nancy Hodur, has been conducted every two years since 2005. It analyzed the effects of oil and gas exploration, extraction, transportation, processing, and capital investments on the state’s economy.
“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 in a news release. “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 the study, North Dakota’s oil and gas industry directly employed 30,100 people in 2023. When factoring in indirect and induced jobs, the industry supported 63,830 jobs statewide. Employment compensation, which includes wages, salaries, and benefits, was estimated at $5 billion.
Gross business volume, which includes direct sales in the oil and natural gas sector along with the broader economic activity generated by the industry, set an all-time high of $48.8 billion — a $6.2 billion increase over 2021, accounting for more than 30% of the state’s overall economic activity.
“Nearly $49 billion is a huge number and shows how important this industry is to our state’s overall well-being,” Bangsund said.
Ness emphasized the significant role of the oil and gas industry in state revenues, noting that it pays more than half of all state taxes while providing thousands of well-paying jobs.
“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,” Ness said.
A separate study conducted for the Western Dakota Energy Association (WDEA) and the North Dakota Petroleum Foundation found that oil and gas tax revenues from fiscal years 2008 to 2024 exceeded $32 billion. These revenues have funded:
- $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
- $8.5 billion to the state’s Legacy Fund, ensuring long-term financial benefits for North Dakotans
“The impact of the oil and natural gas industry can be seen throughout the state,” said WDEA Executive Director Geoff Simon. “From education funding to property tax relief to infrastructure, every county and community has and continues to benefit from this industry.”
