How petroleum and natural gas production affect the people of North Dakota:
Bakken Pumpjack, Aerial: An aerial view of a pumpjack in Western North Dakota.Photo courtesy of Marathon Oil.
- Every person in North Dakota benefits from oil and gas production.
- Homes, schools, and businesses are heated with natural gas.
- Thousands of products are made from petroleum.
- Each barrel (42 gallons) of petroleum can make about 19 ½ gallons of gasoline.
- Over half of the remaining petroleum is used to make other products.
- Each barrel (42 gallons) of petroleum can make about 19 ½ gallons of gasoline.
- Because of the oil and gas industry, the economyEconomy refers to the buying and selling of goods and services. In a good economy, jobs are available, products are available for people to buy, and most people have plenty of money to spend. of North Dakota is boomed between 2008 and 2015.
- North Dakota was the fastest growing economy of any state in the United States.
- Many states were in debt at the time (short of money), but North Dakota had a one billion dollar ($1,000,000,000) budget surplus (extra money).
- Because oil is a commodity – an important, basic good that is bought and sold on the market – the industry can be greatly affected by prices.
- Oil prices fell in early 2016 because over-production of oil around the world caused too much supply, and oil wasn’t as in demand as before.
- Oil prices in July 2008, at the peak of the boom, were $133.48 per barrel. Oil prices in February 2016 were $39.26 per barrel.
- Because oil companies are using some new technology, they are able to keep producing oil, but not as much as they were before prices dropped.
- North Dakota was the fastest growing economy of any state in the United States.
Frack Operator: A technician overseeing hydraulic fracturing operations.Photo courtesy of Whiting Petroleum.
Time-lapse of drilling & fracking a well – Watch this 2-minute video to see a time-lapse of all the machinery, equipment, workers and resources that go into drilling and hydraulic fracturing a well. Video courtesy of Marathon Oil.
- Even though the oil and gas industry has slowed down, it still provides employment to thousands of people.
- Wages (pay received for work) are higher in parts of North Dakota than in many other states.
Trucks bring equipment to a drilling site: Drilling a well requires truckloads of materials.Photo courtesy of Wyoming Casing Service.
- North Dakota's oil and gas boom also brought challenges.
- Many workers moved to western North Dakota to take advantage of job opportunities and there was not enough housing for everyone.
- Prices went up on rent, products, and services.
- The increased truck traffic makes some roads in western North Dakota dangerous.
- New pipelines were put into place to take some of the truck traffic off the roads.
- Many businesses are having difficulty finding enough workers because of the low unemployment rate.
Rig Floor Operators: Rig floor operators (also known as roustabouts) handle operations on a drilling rig. Photo courtesy of Whiting Petroleum.
- In spite of the challenges, the oil boom has opened up career opportunities for young people in North Dakota.
- Depending on the price of oil, North Dakota could see a peak of about 145,000 oil-related jobs by 2035.
- Energy courses and training programs are offered at several North Dakota colleges and universities including those at Bismarck, Minot, Fort Yates, Devils Lake, Wahpeton, Fargo, Grand Forks, and Williston.
- Drilling new oil wells, building pipelines, constructing housing, and creating more businesses will continue to bring opportunities to the people of North Dakota far into the future.
- Each new oil well drilled in the Bakken is expected to pump oil for the next 45 years.