The oil and gas industry in North Dakota remains a powerhouse for the state’s economy, accounting for more than $48.8 billion in gross business volume and over 63,000 jobs in 2023, according to a study highlighted today by Gov. Kelly Armstrong, a researcher from North Dakota State University and industry officials.
“The oil and natural gas industry continues to be a major force in North Dakota’s economy, benefiting communities across our great state,” Armstrong said. “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.”
North Dakota State University researchers Dean Bangsund and Nancy Hodur studied the economic contribution of oil and gas exploration, extraction, transportation, processing and capital investments to the state in 2023, the most recent data available. Similar studies have been conducted every two years since 2005.
Their findings show that North Dakota’s oil and gas industry directly employed 30,100 people in 2023, while economic activity from the industry's indirect and induced effects supported an additional 33,730 jobs, for a total of 63,830 jobs attributed to the industry. Employment compensation, which includes wages, salaries and employee benefits, was estimated at $5 billion.
Total gross business volume, which includes direct sales in the oil and natural gas industry and business generated from indirect and induced economic activity throughout North Dakota, set an all-time high record at $48.8 billion – an increase of $6.2 billion over 2021 and over 30% of the state’s overall gross business volume.
“Nearly $49 billion is a huge number and shows how important this industry is to our state’s overall well-being,” said Bangsund, a research scientist in agribusiness and applied economics at NDSU.
Ron Ness, president of the North Dakota Petroleum Council, noted that North Dakota’s oil and natural gas industry pays more than half of all state taxes collected and provides over 63,000 good-paying jobs in the state.
“Thanks to our industry’s continued 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,” Ness said.
According to another recent study conducted for the Western Dakota Energy Association (WDEA) and North Dakota Petroleum Foundation, tax revenues paid by North Dakota’s oil and natural gas industry from fiscal years 2008 to 2024 now exceed $32 billion. These revenues supported $5.9 billion for local communities and infrastructure, over $2.36 billion for K-12 education, $1.75 billion for water and flood control projects, and over $1.24 billion for property tax relief. Additionally, $8.5 billion in oil and gas taxes went into the Legacy Fund, which benefits future generations.
“The impact of the oil and natural gas industry can be seen throughout the state. From education funding to property tax relief to infrastructure funding, every county and community has and continues to benefit from this industry,” WDEA Executive Director Geoff Simon said.