Hold Unto Your Hats -- The Numbers Are Staggering -- March 15, 2015

Petroleum News has a very, very long essay regarding an NDSU study that shows just how much .... $43 billion ... oil and gas contributes to North Dakota's economy.

The numbers are incredible, but there are some observations and comments that some might find even more interesting.
Petroleum News is reporting (some numbers rounded):

• North Dakota’s oil and gas industry contributed a whopping $43 billion to the state’s economy in 2013. 

Some data points:

• every two years, a one-year period of economic activity in North Dakota is reviewed 
• since these studies began in 2005, there has been a 750 percent increase in economic activity 

Four areas of impact:

• exploration and development 
• extraction and production 
• transportation and processing 
• infrastructure 

Overall:

• direct impact: $17 billion 
• secondary impact across the state: $26 billion 
• every dollar spent by the industry generated another $1.43 in additional business activity 

Exploration and development:

• 2013: $7 million/well; $15 billion in total financial outlay for well development; 2,200 wells 
• 2011: $9 million/well; $12 billion in TFOFWD, 1,271 wells 
• 2013: $15 billion generates another $13 billion as it circulates through the state 
• 2005: only $1.4 billion generated in addition to direct outlays 
• each drilling rig: an economic impact of more than $100 million over CY2013 

Drilling vs production:

• almost equal impact to the state's economy 
• impact on economy will be driven more by production than by exploration going forward 
• 2013 production: $15 billion gross business volume 
• 2005 production: $2.7 billion GBV 

Transportation and processing transportation:

• $3 billion impact 

Infrastructure:

• infrastructure: $5 billion impact 
• operators spent $3 billion, but only $1.5 in-state (North Dakota does not have the specialized equipment required 

Other comments:

• low prices will extend the timeline to develop the oil resource 

Jobs:

• 2013: 56,000 jobs directly to the industry 
• 2005: 5,000 jobs directly related to the industry 
• for newbies: the Bakken boom began in 2000 in Montana and the Bakken boom began in 2007 in North Dakota