ND's Record-Setting Oil Production Fuels Economic Boom with Record Employment, 3.6% Jobless Rate
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.
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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.
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.
@rufus - yeah, let's increase ethanol production even more through goverment subsidies. That'll solve everything.
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.
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.
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
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...
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."
Including, of course, the ethanol industry. :)
"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...
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