Home / News / Bakken News / North Dakota fastest growing state thanks to oil boom
North Dakota Housing Boom

North Dakota fastest growing state thanks to oil boom

North Dakota — again — blew every state out of the water in economic growth last year thanks to its oil boom.

North Dakota’s gross domestic product rose 13.4%, in 2012, the fastest in the nation, as mining, which includes oil and gas extraction, contributed 3.2% to a real GDP growth of 13.4%, according to a report released Thursday by the Commerce Department’s Bureau of Economic Analysis.

Texas was a distant second, with real GDP growth of 4.8%, and Oregon third, up 3.9%. The national average was 2.5%.

The District of Columbia and all states except Connecticut grew, with durable-goods manufacturing, finance and insurance, and wholesale trade the leading growth contributors.

In North Dakota, however, the lion’s share of growth came from mining, the BEA said.

North Dakota is home of the Bakken, a shale formation that also straddles parts of Montana and South Dakota. Oil production there rose to a record in March, up 0.5% to nearly 720,000 barrels a day. Total crude production in the state rose to 783,000 barrels a day, also a record.

From May to October of last year, the increase in Bakken production represented about 40% of the increase of the total U.S. production.

The Minneapolis Fed recently concluded in a study that the rippling effects of the boom can be seen hundreds of miles from the core Bakken area. 

North Dakota has nabbed the title of fastest growing state for three years in a row. Last year’s 13.4% GDP growth follows 7% growth in 2011.

Last year, North Dakota surpassed Alaska and California to become the second largest oil-producing state after Texas.

Speaking of Texas … the state’s 2012 GDP growth was also based in mining, and the second fastest-growing sector — durable-goods manufacturing — is also linked to the oil and gas industry as it includes making much of the heavy machinery energy companies use.

Connecticut’s economic activity dropped 0.1% due mostly to a decline in transportation and utilities.

Follow Claudia Assis on Twitter @ClaudiaAssisMW

popular posts

Leave a Reply

Your email address will not be published. Required fields are marked *