North Dakota growth analysis

A Basic Analysis of the Bakken Oil Boom: Precautions and Planning

"The oil industry began booming in northwestern North Dakota in 2006 with developments in the Bakken formation. This paper is an analysis of the boom and its impact upon the economies in a six county region identified by the high numbers of drilling and permits pulled in the region. Counties in the study region include Billings, Burke, Dunn, McKenzie, Mountrail, and Williams counties.

The boom is evidenced by 28% per annum job growth from 2005‐08 in mining industry employment in the region, an increase in the share of mining jobs in the regions basic industry mix (from 28% in 2000 to 55% in 2008), and a 2008 location quotient of 10.6 for the region’s mining industry relative to the state. This increased mining activity has also corresponded with average annual continuous growth in state‐wide oil and gas extraction tax revenues of 33%. Nearly 25% of all oil and gas extraction tax revenue collected in the state since the institution of the tax in 1981 has happened in the 2008 and 2009 fiscal years. The increased employment and tax revenues are by and large benefits to the state, which is currently one of only a few states experiencing a budget surplus."

Above from the executive summary. (Click on blog title to go to report.)