Gov. Kelly Armstrong hosted a news conference Tuesday with the North Dakota Petroleum Council and North Dakota State University to release the latest findings from a study on the economic impact of oil and gas in the state.

NDSU researchers Dean Bangsund and Nancy Hodur studied the economic contribution of oil and gas exploration, extraction, transportation, processing and capital investments to the state in 2023, the most recent data available. It is the 10th report developed since 2005 in relation to the oil and gas industry’s economic impact.

“Their findings confirm what we already know – that the oil and gas and natural gas industry continues to be a major economic force in North Dakota’s economy, benefiting communities across our state,” Armstrong said. “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. Seeing these numbers on paper really puts it into perspective just what a juggernaut this industry is for North Dakota.”

The $48.8 billion in gross business volume reflected an increase of $6.2 billion over the last study in 2021. Total gross business volume reflects direct sales in the oil and gas industry and business generated from indirect and induced economic activity.

Submitted Photo Ron Ness, president of the North Dakota Petroleum Foundation, speaks at a news conference Tuesday on the impact of oil and gas on North Dakota’s economy.

The report also showed the oil and gas industry directly employed 30,100 people in 2023. Economic activity from the industry’s indirect and induced effects supported an additional 33,730 jobs for a total of 63,830 jobs attributed to the industry. Wages, salaries and employee benefits were estimated at $5 billion.

“That’s just the impact to the economy,” Armstrong said. “We know from another recent study that the oil and gas industry has paid more than $32 billion in taxes in North Dakota since 2008. On average, oil and gas taxes account for more than 50% of the state’s local tax collections for over the past decade.”

The tax data comes from a study conducted for the Western Dakota Energy Association and North Dakota Petroleum Foundation. The NDSU study showed $4.5 billion in state and local government revenue from oil and gas activity during 2023.

Armstrong noted the taxes not only support infrastructure and education but also water and flood control projects, the Outdoor Heritage Fund and the Legacy Fund, which is key to financing his property tax relief proposal currently before the Legislature.

“The numbers aren’t the real story. This is creating generational wealth for North Dakotans,” said Armstrong, who called oil and gas impact the single biggest game changer in the state. Young people across the state are experiencing opportunities to remain or to return to the state, he said.

Armstrong stressed the opportunities in the future with the potential to enhance oil recovery with captured carbon dioxide.

The governor said he has concerns about a legislative decision in South Dakota to eliminate the use of eminent domain to advance CO2 pipelines because of the need to get CO2 to the oilfields of North Dakota. South Dakota’s decision will affect the Summit pipeline that has been proposed to run through the Dakotas.

“We don’t produce CO2 at a scale and en masse in North Dakota in a way in which, I think, we’re going to need to utilize it to figure out how to crack that code and get another 10-20% out of the Bakken,” Armstrong said.

“Industry will find a way to get the CO2 here. But that pipeline provided a lot of opportunities for North Dakota,” added Ron Ness, president of the Petroleum Council. Ness also acknowledged the ingenuity and investment already made by the industry to advance production.

“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 in a prepared statement.