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Thursday, March 29, 2012 ■ Covering the Williston Basin ■ Volume 2, Issue 13
Economic goals exceeded Setting records
By NICK SMITH Bismarck Tribune
North Dakota’s robust economy con-
tinued to gain strength in 2011, a year when the state brought in increased tax revenue and saw record oil production. State offi cials say that tax revenue
collections in the new bieunnium are al- ready far ahead of projections, while oil and gas offi cials report that oil produc- tion continues to set new records each month. A record 152.9 million barrels of
crude was produced in North Dakota last year, up almost 40 million more bar- rels than the previous record set a year earlier, according to the Associated Press. Earlier this year, North Dakota overtook California as the third-largest oil-pro- ducing state in the nation. Production totals released March 8 by
both states show North Dakota pumped 16.9 million barrels of oil in January, compared with California’s 15.8 million barrels. North Dakota had a daily aver- age of 546,000 barrels, besting California by more than 36,000 barrels. North Dakota oil production passed 500,000 barrels per day for the fi rst time in state history in November, with nearly 510,000 barrels per day. According to Department of Mineral Resources Di- rector Lynn Helms, peak production could reach as much as 900,000 barrels
across industry
per day by early 2014. Increased oil production has led to
record levels of oil tax revenue. Joe Morrissette, assistant executive budget analyst with the North Dakota Offi ce of Management and Budget, said oil tax collections are already ahead of the forecast for the 2011-13 biennium. The original OMB estimate was for oil tax collections of just over $2.04 billion for the current biennium. “It’s already surpassed our expecta- tions at this point,” Morrissette said. Through the fi rst six months of the biennium, oil tax collections are at more than $557 million. If oil tax collections continued at the current pace, the rev- enue collected would exceed the OMB estimate by nearly $200 million. The current OMB estimate predicts that the $300 million cap in general fund allocations will be met. An estimated $612.5 million would be transferred to the Legacy Fund, while $341 million would be transferred to the Property Tax Relief Sustainability Fund and $247.2 million would be distributed to cities and counties. Morrissette said the oil industry is a
“volatile” one. However, he said, all signs indicate that the oil industry will con- tinue at a similar pace for the time be- ing, leading to continually strong oil tax revenue collections. Pam Sharp, director of the North
Continued on page 8 Oil industry
pioneer dies Al Golden was the face of the oil industry in North Dakota — 2
Exploring natural
gas, electric growth Study needed on how to meet the ravenous electricity needs of the state’s oil industry — 7
EPA proposes
Mont. air cleanup Three industrial plants would spend $90M to improve air quality — 16
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