ADVANCING THE POSSIBILITIES
When it comes to job creation and economic growth, oil and natural gas are advancing the possibilities
The oil and gas industry is one of the largest single basic-sector industries in the state, contributing more than $42.6 billion to North Dakota’s economy annually and supporting nearly 50,000 jobs and careers in 2021. This economic impact permeates into every industry in North Dakota, ranging from agriculture to professional and social services, supporting local businesses and tax revenues.
DIRECT ECONOMIC IMPACT
Oil and Natural Gas Impact by Sector
Oil and natural gas requires products and services from a multitude of businesses, and its employees spend money in our state and local economies. In addition to the $32 billion* contributed through mining, oil and gas reverberates through all other economic sectors, including:
$2.36 billion in manufacturing
$1.44 Billion in finance and insurance
$1.02 Billion in transportation and warehousing
$974 million in wholesale trade
$936 million in real estate and rental
$719 million in professional, scientific & technical services
$576.5 million in utilities
$425 million in health and social services
$387 million in administrative and waste services
$341 million in construction
$270 million in retail trade
$251 million in other services
$242 million in information
$232 million accommodation and food service
$217 million in government enterprises
$57.9 million management of companies
$28.5 million in arts, entertainment and recreation
$14.2 million in educational services
$8.36 million in ag, forestry, fish and hunting
*According to the study “Petroleum Industry’s Economic Contribution to North Daktoa in 2021,” conducted by the North Dakota State University Department of Agribusiness and Applied Economics and Center for Social Research
Oil and natural gas support jobs in every sector
North Dakota’s oil and natural gas industry doesn’t just support jobs for engineers, geologists and drillers. It supports jobs across a huge variety of fields, from accountants who oversee company financials to loggers who track on-site data, ensuring the drilling operation is running as efficiently as possible. The oil and gas industry supports nearly 50,000 jobs in North Dakota with a $3.9 billion total payroll.
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Enhancing our Energy Security
The oil and natural gas found right here in North Dakota is getting us closer to energy independence, allowing the U.S. to lessen dependence on foreign energy sources. North Dakota produced on average about 1.07 million barrels of oil per day in 2022, making it the number three oil producer in the U.S. behind only Texas and New Mexico.
North Dakota’s rise as a leader in oil production has helped the country as a whole become the world’s No. 1 producer in both oil and natural gas, strengthening the nation’s energy security. In fact, for the first time since at least 1949, the U.S. became a net exporter. In 2020, annual petroleum net imports were actually negative (at -0.65 MMb/d), the first time this occurred since at least 1949.
Energy security also allows an additional $400 billion to stay in the U.S. economy each year.