During a recent event dubbed “Energy Day” in Bismark, N.D. various groups came together to recognize the impact of the oil and gas industry. The day included legislative committee hearings, an education session and facts and figures regarding the industry’s importance to North Dakota’s economy.
According to one study, presented by Dean Bangsund of ND University, oil and gas had a $43 billion economic impact on North Dakota in 2013 and affected many parts of the aspects of the state’s economy. Highlights include:
- Retail trade saw the largest impact, accounting for $11.3 billion of the total.
- Personal income saw the second-largest impact at $9.3 billion.
- The finance, insurance and real estate industry ($4.5 billion) overtook the government
- $4.4 billion in government revenues
“Researcher Dean Bangsund told Bakken Magazine “This study helps confirm that the petroleum industry is one of the largest basic-sector industries in North Dakota. Although activity is concentrated in the western part of the state, the magnitude of the contributions to both the state and local governments and the sheer volume of secondary economic effects in nearly all sectors of the North Dakota economy would suggest that the economic effects of the industry are felt statewide.”
With unstable pricing environment, the future is unknown. Most economic indicators remain strong, though unemployment ticked up slightly in January and Bangsund believes that North Dakota will continue to reap positive benefits from the oil and gas industry for some time.
Photo: CC