The economic impact of North Dakota’s oil and gas industry was down by about $9 billion in 2015, according to a study funded by the industry.
A biannual study commissioned by the North Dakota Petroleum Council showed oil and gas pumped $34.25 billion dollars into North Dakota’s economy in 2015, down from $43 billion in 2013 but up from $30.4 billion in 2011.
“This study helps confirm that the petroleum industry remains one of the largest basic-sector industries in North Dakota in both good years and bad,” said study co-author Dean Bangsund, a research scientist at North Dakota State University. “This is especially true as oil production, versus oil field development, is increasing in relative economic importance.”
Direct impacts of the industry were $14.38 billion and secondary impacts were $19.87 billion of the $34.25 billion total.
Oil and gas related retail trade provided the largest impact, bringing in $8.85 billion. Bangsund said this involves direct expenditures reported by oil and gas companies and a calculated amount of money spent by those indirectly related to industry, like the personal spending of employees.
Oil and gas also contributed $7.54 billion to personal income. This includes a multitude of income sources - wages paid directly to oil and gas employees, profits made by independent truck drivers, rents paid to landlords and tips paid to waiters, to name a few.
Nearly 30 percent of all private wages and salaries paid in the state are either directly or indirectly supported by oil and gas.
More than six other industries in North Dakota also benefitted. And $4.1 billion in royalties, taxes and other revenues came from the oil and gas industry.
“Through continued innovation and development, the industry is able to do more with less and have proven that they can weather these downturns and come out even stronger,” Ron Ness, president of the NDPC, said in a statement.