North Dakota sees increases in real GDP per capita following Bakken production

Energy Information Administration ^ | JULY 12, 2013 | Energy Information Administration

[thackney]

In recent years, North Dakota has seen significant gains in real gross domestic product (GDP) per capita, coinciding with development of the Bakken shale play. In 2001, North Dakota's GDP per capita was well below the U.S. average, ranking 38th out of 50 states. Starting in 2004, the state's GDP per capita rose consistently each year, eventually surpassing the U.S. average in 2008. By 2012, its real GDP per capita was $55,250, more than 29% above the national average. Even though the state appeared to be closing the gap on the U.S. average before Bakken production began, the rising oil and gas production likely contributed to the economic growth the state has enjoyed.

In 2012, North Dakota reported the highest annual increase in real per capita GDP of any state in the country for the second consecutive year. In 2012, real per capita GDP in North Dakota increased by nearly 11% from the previous year, according to statistics released June 6, 2013 by the U.S. Bureau of Economic Analysis (BEA). This is considerably higher than the national growth rate of less than 2% and is more than three times as large as the growth rate in Texas (3.27%), the state with the next highest annual growth.

Real per capita GDP has been rising steadily for the past decade in North Dakota, even as incomes around the rest of the country have fluctuated. Particularly high growth started in 2007, when increased production of oil and natural gas in the Bakken region was made possible by advancements in horizontal drilling and hydraulic fracturing practices. Between 2007 and 2012, annual crude oil production in the state increased fivefold, and annual natural gas gross withdrawals more than tripled. As a result, the real GDP of the state mining industry has grown by nearly 42% in the past year with a compound annual growth rate of about 39% between 2007 and 2012. This has led to increased demand for electricity by the industrial sector, and is spurring development of new oil and gas infrastructure.

Development in the mining industry has attracted further investment in other sectors of the state economy. Transportation is an integral part of the production process for the mining industry. Hundreds of truckloads of materials are needed for the hydraulic fracturing process to begin production from a well, and afterward, about 75% of what is produced is transported by truck. Between 2007 and 2012, the transportation and warehousing industry in North Dakota has seen a compound annual growth rate of about 16%, with a 35% increase in 2012 alone.

North Dakota's population increased as the mining and transportation industries were developed. In 2012, the U.S. Census Bureau reported North Dakota as having the highest population growth rate in the country, averaging more than 2% between July 1, 2011, and July 1, 2012. The accommodation and food services industry and the real estate industry have also grown, expanding at annual compound growth rates of 7% and 9%, respectively, from 2007 to 2012.

[thackney]

Links to related info at source:

[Fightin Whitey]

Black gold.

[dennisw]

So when are the illegals going to flock there and bring down the GDP per capita but increase the entire GDP? I hear Hispanic immigrants (legal and illegal)are becoming heavily represented in drill crews in Texas. Louisiana and offshore those states. Not enough tough native born to fill those jobs

[spokeshave]

Yeah...and the local Indian Tribes are building an Oil Refinery........dims heads exploding all over....

and when ND joins OPEC....

[DUMBGRUNT]

Good to hear someone is doing well!

http://fuelfix.com/blog/2013/05/10/ground-broken-for-oil-refinery-on-nd-reservation/

Here in Illinois all we get is an ever increasing sucking sounds from Springfield and Chicago.

January 1, 2013, the sales tax is 9.5% , NICE? Wana shop in the city?

Best to run the other way!

[jdsteel]

I remember reading a National Geographic magazine a few years ago, a story about how North Dakota’s economy and people were a lost cause. A vast wasteland. Lots of pictures of old abandoned farms and towns. Funny how a bit of good old capitalism and energy extraction can change things in a hurry! God bless the hard working folks in N.D.

[thackney]

Housing boom will continue
http://www.jamestownsun.com/event/article/id/190837/
July 15, 201

Certainly it’s not a surprise that North Dakota leads the nation in housing development, according to the U.S. Census Bureau. But the numbers are quite staggering, considering that eight North Dakota counties rank among the top 100 in the country in the percentage of new housing units.

Williams County ranks first in the country, with a 13.9 percent increase and 1,525 new housing units.

Ward County is second, with a 4.8 percent increase and 1,318 new housing units.

Other North Dakota counties in the top 100 are Stark County, No. 8, 3.1 percent increase with 344 new housing units; Morton County, No. 9, 3.0 percent increase with 370 new housing units; Burleigh County, No. 17, 2.2 percent increase with 786 new housing units; Cass County, No. 23, 2.0 percent increase with 1,372 new housing units; Grand Forks County, No. 58, 1.4 percent increase with 401 new housing units; and Ramsey County, No. 100, 1.2 percent increase with 68 new housing units.

And given that the ongoing oil boom in western North Dakota appears to be here for the long term, the housing boom is expected to continue, too. Cities like Williston and Minot have seen the number of housing units skyrocket in order to keep up with influx of oil industry-related employees moving to the area. Cities of all sizes across western North Dakota have struggled to provide enough permanent housing for workers, even as record construction continues.

We expect counties in western North Dakota to continue to lead the nation in housing development as the state struggles to keep up with the energy industry.