While the rest of the country suffers through unemployment, foreclosures, bank failures, and budget deficits, North Dakota is on a roll – thanks in large part to its abundant resources of oil and natural gas, almost all of which are on private land.

North Dakota produced a record 9.9 million barrels of oil in July, up from the previous record of 9.4 million set in June, according to figures published in the Billings Gazette (Oct. 5, 2010). A record 5,051 wells were in operation in July, up from the previous record of 4,977 set in June. North Dakota’s natural gas production also reached new heights in July; the 9.9 million cubic feet produced that month smashed the previous record of 9 million cubic feet set in June.

The plains state surpassed Louisiana last year as the nation’s fourth-largest oil-producing state. According to the Gazette, oil production has nearly doubled in the past two years in North Dakota, with production records having been set every month since January. Indeed, oil production was expected to reach a new high of 10.5 million barrels in August.

Almost all the oil and natural gas being extracted in North Dakota are located in the rich Bakken Shale and Three Forks-Sanish oil reservoirs located in the western part of the state. In 2008, the U.S. Geological Survey (USGS) estimated that up to 4.3 billion barrels of oil could be recovered from the Bakken Shale, using current technology. That technology uses advanced horizontal drilling techniques that are far more efficient than those used on rigs in the area in the early 1980s.  Future refinements to those techniques could lead to even more oil being extracted than the USGS current estimate. USGS calls the Bakken Shale, which stretches into eastern Montana, the largest continuous oil accumulation it has ever assessed.

The oil and gas lie underneath wheat farms. Wheat is still being produced on the farms, but the land is now dotted with oil rigs. Royalties from oil and gas have turned North Dakota’s wheat farmers into millionaires. There have been other economic benefits as well. The Wall Street Journal (Oct. 4, 2010) reported that 293 banks in the U.S. have failed since Jan. 2008. Not a single one of them was located in North Dakota.


  • Bonner Cohen, Ph. D.

    Bonner R. Cohen, Ph. D., is a senior policy analyst with CFACT, where he focuses on natural resources, energy, property rights, and geopolitical developments. Articles by Dr. Cohen have appeared in The Wall Street Journal, Forbes, Investor’s Busines Daily, The New York Post, The Washington Examiner, The Washington Times, The Hill, The Epoch Times, The Philadelphia Inquirer, The Atlanta Journal-Constitution, The Miami Herald, and dozens of other newspapers around the country. He has been interviewed on Fox News, Fox Business Network, CNN, NBC News, NPR, BBC, BBC Worldwide Television, N24 (German-language news network), and scores of radio stations in the U.S. and Canada. He has testified before the U.S. Senate Energy and Natural Resources Committee, the U.S. Senate Environment and Public Works Committee, the U.S. House Judiciary Committee, and the U.S. House Natural Resources Committee. Dr. Cohen has addressed conferences in the United States, United Kingdom, Germany, and Bangladesh. He has a B.A. from the University of Georgia and a Ph. D. – summa cum laude – from the University of Munich.