The early years of oil exploration in western North Dakota lead to the first dramatic discovery of oil in April, 1951 at the Clarence Iverson #1 Well near Tioga. Since 1951 another 13,500 wells have been drilled and about 3,300 are currently producing in the state. State Geologist, John Bluemle notes that “North Dakota has been the 9th ranking oil producing state for many years.” Crude oil and refined petroleum products are among our most important exports and revenue producers.
In the 50+ years since oil was discovered in ND, the petroleum industry has produced over 1.5 billion barrels of oil worth over $25 billion. In addition to generating almost $2 billion in tax revenues for the State, ND has received more than $500 million from oil and gas leases, bonuses, royalties, and rentals on state lands.
According to a ND Geologic Service report, “On a per capita basis, North Dakotans are among our nation’s biggest users of petroleum products. We drive long distances. We like to keep warm in the winter. Our farmers rely mainly on gasoline and diesel fuel to do their jobs. The increasing number of tourists who visit us use oil products to get here.”
Because of the volatility of the market, booms and busts are the norm through the years with prices fluctuating from $30 a barrel in the early 1980’s to $10. a barrel in the late 80s, peaking briefly at over $30. during the 1990 Gulf War, then falling below $20. during most of the 90’s – to below $7. a barrel in 1999, shutting down virtually every rig in western North Dakota. Currently the high price of oil has once again created a “boom” and oil exploration is very profitable in North Dakota.
Despite the up and down cycles, the future for North Dakota’s oil industry is bright. A huge amount of oil remains in the ground. New technologies have vastly improved both the odds of finding oil and the efficiency of getting it out of the ground.