As news and commentary focus on the state of our economy, here are a few facts that North Dakotans should know about their state's oil and gas industry.
First, the industry remains massive. The Bakken produces more than 10 percent of all American-produced oil. More than 13,000 wells operate across western North Dakota, of which 11,000 tap into the Bakken.
Before any of us pick up the morning paper, more than a quarter of a million barrels already have been produced that day. By lunch, the number exceeds half a million.
Construction of new wells continues, though at a slower rate than the astounding pace of a few years ago.
With 28 rigs today, the state's oil industry constructs around 56 wells per month. At a cost of $7.5 million per well, that's $420 million of economic investment every 30 days. Think of this in comparison to the $27 million of construction permits filed in Fargo in March.
ADVERTISEMENT
However, the thousands of people who work in the industry derive the greatest benefit. Despite its layoffs, the industry still employs more than 40,000 people across the state, and that's four times more than the approximately 10,000 people whom the industry employed in 2005.
Employment is projected to continue growing. The Department of Mineral Resources predicts oil and gas employment will eventually surpass 100,000 jobs. Looking at Williston alone, the city retains more than 12,000 oil and gas jobs today and may grow that figure to more than 40,000.
If true, the added population from secondary jobs and families will grow Williston to more than 100,000 people.
The Bakken truly is a unique natural resource, and we have only begun to reap its benefits.
Mike Rydell
Fargo
