As North Dakotans mark April 4th, the 75th anniversary of the state’s first major oil discovery and the 20th anniversary of the modern economic benefits unlocked by the Bakken formation, it is a fitting moment to reflect on one of the most transformative chapters in the state’s history.
North Dakota is known for its endless skies, fertile farmland, and resilient communities. Yet beneath those prairies lies one of America’s most significant energy stories. What began as a modest natural gas find in the late 19th century has grown into a powerhouse industry that fuels jobs, funds schools and roads, and secures the state’s financial future.
Oil and gas production in North Dakota began in 1892, with the first known discovery of natural gas. Early settlers quickly put the resource to work, piping gas to light homes, heat buildings, and power small businesses in nearby farms and rural communities. It was a quiet beginning, but it proved that the ground held reliable energy capable of supporting daily life across the state.
Sixty years later, on April 4, 1951, the Clarence Iverson #1 well near Tioga struck oil. Over its lifetime, the well produced more than 585,000 barrels. This discovery proved that North Dakota had commercially viable reserves and marked the true launch of the state’s modern oil and gas industry. This year marks the 75th anniversary of that pivotal moment. By the late 1970s, North Dakota experienced its first true oil boom. Production surged, reaching 144,000 barrels per day in 1984. New wells, roads, and support businesses sprang up across western North Dakota. The boom delivered thousands of jobs and breathed new life into local economies.
The real game-changer came in the 2000s. Advances in horizontal drilling and hydraulic fracturing made it possible to access oil trapped in the Bakken shale formation deep beneath western North Dakota. Engineers could now drill laterally up to three miles, tapping reserves that had previously been unreachable. In 2010, North Dakota voters approved the creation of the Legacy Fund. A portion of oil and gas tax revenues is allocated to this permanent savings account to be invested for future generations, supporting infrastructure, tax relief, education, and economic diversification.
In April 2014, North Dakota reached a historic landmark when oil production hit 1 million barrels per day. The state had become one of the top oil-producing regions in the United States. Communities across the Bakken saw rapid growth, with new housing, schools, and businesses appearing almost overnight. In 2017, the completion of the Dakota Access Pipeline (DAPL) became one of the most important infrastructure developments in state history and a major engine of jobs and revenue for North Dakota. The pipeline created thousands of construction jobs and continues to support ongoing employment through operations and maintenance. By safely moving Bakken crude oil to markets across the country, it dramatically improved efficiency, reduced truck and rail traffic, and strengthened the state’s energy competitiveness. The project has generated over $222 million in property tax revenue for local communities, directly funding schools, roads, public services, and long-term community development.
Today, the energy industry continues to deliver strong benefits. North Dakota ranks third in the nation, after Texas and New Mexico, in both crude oil reserves and production. It supports more than 63,000 jobs statewide and pumps billions of dollars into schools, infrastructure projects, and tax relief. From roughnecks on the rig floor to teachers in new classrooms funded by energy revenue, the impact touches nearly every corner of North Dakota life. The Legacy Fund will have grown to more than $14 billion. That money is invested prudently, earning returns that will fund everything from flood protection and road repairs to scholarships and business incentives for decades to come.
From the first flicker of natural gas in 1892 to today’s dual celebrations of 75 years of oil and gas development and 20 years of Bakken-driven economic growth, the industry has delivered energy and opportunity to generations of North Dakotans. The Dakota Access Pipeline stands as a prime example of how smart infrastructure multiplies those benefits through jobs, revenue, and efficiency. As the state looks ahead, that same pioneering spirit ensures the best days for North Dakota’s energy future are still to come.
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This article is part of Fueling America: 250 Years of Energy Innovation, a special project by the Institute for Energy Research highlighting America’s unique role as a global energy innovator. To read more related content please visit Fueling250.org. 
