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I understand there are a few more that are
going to be drilled this summer. So we do
have some oil activity going on here, too. I
would definitely think that would help attract
people, being on the fringe of the oil
patch. I think that’s what some people might
be looking for, to get out of the hustle and
bustle but not be too far away from the oil
activity. I think that’s a big player there.”
And from all accounts, it looks like the
growth in North Dakota will only get stronger
moving forward.
“The trend in North Dakota is growth,
just very fast growth,” says Raghavan.
“And since it’s happening so quickly, North
Dakota still has pretty low costs. The median
home value is still low, even though it’s
getting such an influx of growth. I would
predict that in the future, the homes—just
with supply and demand, with more people
moving into these cities—the costs are going
to go up and that means median home values
are probably going to go up. The salaries
will probably go up, as well. I think people
are really underestimating how much North
Dakota is growing right now. I personally
am from Ohio, so I love the Midwest. I love
all of the Midwestern states, and I think the
entire Midwest is underrated, but North Dakota
especially.”
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EXPERTS
Divya Raghavan is a senior analyst with
finance company NerdWallet, a financial
literacy website based in the San Fransisco
Bay Area. According to their website,
NerdWallet uses quantitative analysis
to provide transparent personal finance
advice for consumers. Their data-driven
tools provide clear and unbiased information
helping people make smarter decisions
about their personal finances, travel
plans, healthcare costs, retirement savings
and higher education expenses.
Trivia Time
Jobs and Revenue
• The oil and natural gas industry
supports more than 46,000 jobs in
North Dakota, contributing more
than $6.4 billion to the state’s economy
and representing 12.3 percent of
the state’s GDP;
• North Dakota boasts the nation’s
lowest employment rates at 2.7 percent;
• The average wage, as of 2011, in the
oil and gas extraction industry was
$90,225, 141.5 percent higher than
the statewide average of $37,353;
• In 2010, the industry paid nearly
$750 million to North Dakota in oil
and gas production and extraction
taxes, $85.2 million in royalties and
another $295 million in lease bonuses
to trust funds managed by the
North Dakota State Land Department;
and
• A recent North Dakota State University
study reports that the petroleum
industry paid $821.8 million in state
and local taxes in 2009.
Source: www.ndenergyforum.com/expert-facts/#sthash.mkNsvc55.dpuf
BASIN BITS | Spring 2014 111