North Dakota and the Economic Miracle Oil

Posted March 12, 2012 | folder icon Print this page

If President Obama were serious about domestic oil production, he would look to North Dakota to understand that sound energy policies lead to economic growth, jobs, and access to affordable energy. Stephen Moore explained in the Wall Street Journal this weekend the stark contrast between North Dakota’s and California’s respective energy policies, which have led to an economic miracle in North Dakota:

  • North Dakota surpassed California and is now the nation’s 3rd largest oil producing state, despite the fact that California has more proven oil reserves.
  • The Bakken Formation in North Dakota is likely to produce more oil than any other site in the country this year.
  • North Dakota has the nation’s lowest unemployment rate at 3.3%. Compare that to California that has an unemployment rate of 11.1% and ranked most hostile to drilling for energy in the United States.
  • North Dakota has a budget surplus of $1 billion and has started several ‘shovel ready’ infrastructure projects that are paid for with state funds. In contrast, California is $6 billion in the hole and funding for schools, health care, and museums are being cut.
  • In North Dakota, the number of millionaires increased 38% from 2009 to 2010. Meanwhile, California “lost nearly 50,000—or almost a third—of its high-income residents….”

The divide between these two states’ energy policies, both rich with domestic resources, is another reminder why the Obama administration’s energy policy is flawed. The Obama administration is trying to move the country towards California’s flawed energy policies instead of enjoying the benefits of unhindered domestic energy production.

http://www.eia.gov/dnav/pet/pet_crd_crpdn_adc_mbbl_m.htm

Author:
Johnny Russell