Since the rapid emergence of horizontal drilling and hydraulic fracturing in the Bakken in 2008, North Dakota oil producers have contributed more than $22 billion in tax revenue to the state's coffers. The benefits of that enormous tax contribution are enjoyed by the citizenry in every corner of the state.
Separate studies released this week show that in 2019, 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.
"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 news conference at the Capitol.
A separate study conducted on behalf of WDEA and the ND Petroleum Council revealed that from fiscal years 2008 and 2020, tax revenues from the oil and gas industry in North Dakota totaled $22.3 billion. That revenue provided $8.2 billion for local communities and infrastructure, nearly $1.6 billion for K-12 education, over $1.2 billion for water and flood control projects, $879 million for local transportation projects, $440 million for property tax relief and $29 million for outdoor heritage projects across the state. The revenue stream is also responsible for the $8 billion balance in the state's Legacy Fund, which receives 30% of all extraction and production taxes.
"Our report shows that every county in North Dakota continues to receive revenue derived from the stat's oil and natural gas production and extraction taxes," said Brent Bogar, senior consultant with AE2S, who led the study.
The statewide impact study developed by NDSU researchers Dean Bangsund and Nancy Hodur shows 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 18,00 jobs. Employment compensation, which includes wages, salaries and employee benefits, was estimated at $4.5 billion.
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