Saturday, September 18, 2010

ND's Record-Setting Oil Production Fuels Economic Boom with Record Employment, 3.6% Jobless Rate

Following an ongoing pattern that I have reported previously, North Dakota set more new records in July for monthly oil production (see top chart above, data here) and employment (see bottom chart above, data here).

There was a new record high of 321,042 barrels per day produced in July, which was a 1.83% increase from the previous record in June, and a 41% increase from July 2009.  From 156,420 barrels per day level in May 2008, daily oil production in North Dakota has now doubled to more than 321,000 barrels. 

As a direct result of the ongoing North Dakota oil boom, the state's economy is booming as well, with the lowest state jobless rate in the country of 3.6% in July, and recent jobs gains that completely offset all of the jobs lost during the recession, bringing North Dakota's employment to a record high in July of 373,500 (see bottom chart above).  July marks the fifth straight month of job growth in North Dakota, which totals to a cumulative gain of 7,700 jobs since February.     

11 Comments:

At 9/18/2010 2:12 PM, Blogger Buddy R Pacifico said...

This comment has been removed by the author.

 
At 9/18/2010 6:09 PM, Blogger rufus said...

It's also an Ethanol-producing/exporting state.

Iowa, South Dakota, Nebraska, Minnesota, Wisconsin, Kansas - All, Ethanol producing States - All doing well.

Solid Ag states, building out renewables (Iowa is No 2 in Wind Energy, and I think N. Dakota, and S. Dakota, both, are, also, building out wind pretty good.

 
At 9/18/2010 6:35 PM, Blogger marmico said...

Surprisingly (at least to me), Ohio produces more ethanol than either Kansas or North Dakota, Indiana produces almost as much as South Dakota and the Cornhuskers produce half as much as the Hawkeyes.

 
At 9/18/2010 8:15 PM, OpenID American Delight said...

@rufus - yeah, let's increase ethanol production even more through goverment subsidies. That'll solve everything.

 
At 9/18/2010 8:38 PM, Blogger rufus said...

The "subsidies" for ethanol go away on Jan 1st, AD.

However, I understand that the 50,000 troops in Iraq ($50 Billion/Yr,)

the tens of thousands of troops in support facilities in Qutar, Abu Dhabi, and Dubai, and the Two Carrier Groups will still be in the Gulf.

Also still in effect will be the approx $4 Billion Yr in Tax Credits, Depletion Allowance, etc. for the oil companies.

And, of course, we will still be benefitting from the lower gasoline prices brought on by the competition/substitution of 875,000 barrels/day of ethanol.

And, of course, we'll still be keeping that $20 Billion/Yr at home, rather than sending it to Saudi Arabia, or Venezuela, etc.

 
At 9/18/2010 9:15 PM, Blogger Allen said...

I'd be curious to see how this affects North Dakota's demographics. IIRC 1994-2001 it was estimated that the state's population between 18-35 had dropped by 40%. And that of course didn't measure how many were moving to Fargo or the few other big towns in the state.

 
At 9/19/2010 6:59 AM, Blogger juandos said...

rufus notes: "Also still in effect will be the approx $4 Billion Yr in Tax Credits, Depletion Allowance, etc. for the oil companies"...

From the Tax Foundation:
Since 1981, Oil Industry Taxes Have Exceeded Profits In All But Three Years

 
At 9/19/2010 8:13 AM, Blogger juandos said...

Allen says: "I'd be curious to see how this affects North Dakota's demographics"...

One small part of that story might be answered at this Tax Foundation site: State to State Migration Data...

 
At 9/19/2010 9:37 AM, Blogger rufus said...

Juandos, you could say that about virtually Any industry. Once you consider Sales taxes, Property taxes, Income taxes, Payroll Taxes, etc, etc, they are almost certain to exceed "profit."

 
At 9/19/2010 9:38 AM, Blogger rufus said...

Including, of course, the ethanol industry. :)

 
At 9/19/2010 9:25 PM, Blogger juandos said...

"Juandos, you could say that about virtually Any industry"...

Well rufus that's coming already with this economic illiterate defiling the Oval Office but until then that's not exactly true though I do get your point...

 

Post a Comment

Links to this post:

Create a Link

<< Home