By Scout Nelson
On March 11, 2025, North Dakota State University (NDSU) researcher Dean Bangsund, alongside Governor Kelly Armstrong and North Dakota Petroleum Council President Ron Ness, addressed the $48.8 billion economic impact of the state's oil and gas industry. Their discussion, held at the State Capitol in Bismarck, was based on a recent NDSU study that examined the industry's contributions to job creation, tax revenue, and overall economic activity in 2023. The study, co-authored by NDSU researcher Nancy Hodur, has been conducted biannually since 2005, analyzing the economic effects of oil and gas exploration, extraction, transportation, processing, and capital investments.
“The oil and natural gas industry continues to be a major force in North Dakota’s economy, benefiting communities across our great state,” said Governor Armstrong. “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.” The study found that in 2023, the oil and gas sector directly employed 30,100 people, with the industry supporting a total of 63,830 jobs across the state when considering indirect and induced positions. The total compensation for these jobs, including wages, salaries, and benefits, amounted to $5 billion.
The industry reached an all-time high in gross business volume in 2023, totaling $48.8 billion, a $6.2 billion increase from 2021, representing over 30% of the state’s economic activity. Bangsund highlighted the significance of this number, underscoring the crucial role the sector plays in the state's economy.
ed 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,” said Ness. With continued investments in technology and innovation, he believes the industry will remain a significant driver of North Dakota’s economy for generations.
A separate study from the Western Dakota Energy Association found that oil and gas tax revenues from 2008 to 2024 have funded critical areas like local infrastructure, K-12 education, water and flood control, property tax relief, and the Legacy Fund, benefiting communities statewide.
Photo Credit: north-dakota-state-university
Categories: North Dakota, Business