North Dakota – The oil and gas industry continues to be a cornerstone of North Dakota’s economy, contributing a significant $48.8 billion in gross business volume and providing over 63,000 jobs in 2023. This data, highlighted by Governor Kelly Armstrong, researchers from North Dakota State University (NDSU), and industry officials, underscores the immense impact the sector has on the state.
Governor Armstrong emphasized the crucial role the industry plays in supporting various sectors within the state. “The oil and natural gas industry continues to be a major force in North Dakota’s economy, benefiting communities across our great state,” Armstrong stated. “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.”
NDSU researchers Dean Bangsund and Nancy Hodur conducted a study on the economic contributions of oil and gas exploration, extraction, transportation, processing, and capital investments. Their findings revealed that, in 2023, the oil and gas industry directly employed 30,100 people, with an additional 33,730 jobs generated from the industry’s indirect and induced effects, bringing the total number of jobs attributed to the sector to 63,830. Employment compensation, including wages, salaries, and benefits, amounted to $5 billion.
The study also reported a record-breaking gross business volume for the state, reaching $48.8 billion, an increase of $6.2 billion over 2021. This amount represents more than 30% of the state’s total business volume, showcasing the growing importance of the oil and gas industry in the state’s overall economic landscape.
“Nearly $49 billion is a huge number and shows how important this industry is to our state’s overall well-being,” said Bangsund, a research scientist in agribusiness and applied economics at NDSU.
Ron Ness, President of the North Dakota Petroleum Council, emphasized the sector’s continued contributions to the state’s economy, noting that oil and gas industries account for more than half of all state taxes collected. “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.
The economic impact of the oil and gas industry extends beyond job creation. A study commissioned by the Western Dakota Energy Association (WDEA) and North Dakota Petroleum Foundation showed that oil and gas tax revenues from fiscal years 2008 to 2024 have surpassed $32 billion. These funds have been instrumental in supporting local communities, with over $5.9 billion allocated for infrastructure, more than $2.36 billion for K-12 education, $1.75 billion for water and flood control projects, and $1.24 billion for property tax relief. Additionally, the Legacy Fund has received $8.5 billion from oil and gas taxes, ensuring that future generations will benefit from the sector’s continued success.
