Oil is still a key industry in North Dakota but recent output and price movements are not necessarily moving in ways we might expect. The recent global changes from OPEC still might not impact the industry going forward.
I develop a rough estimate for oil industry revenue in North Dakota to show both the volatility, the progress, and the setbacks.
I follow up last week’s comparison of North Dakota oil price and Brent crude prices with a comparison of ND oil prices to WTI prices.
I tire of the political arguments in either side of this specific issue when I think a fundamental economic issue gets little attention. Those called the “left” oppose this happening at any price. Those on the “right” want the leases available but tend to think the price should be low for unintelligible reasons.
I am often asked about the relative position of oil and other industries in the ND economy. Usually this is me being asked to settle a dispute between industries as to who is more important or some such nonsense. However, the issue of oil in the North Dakota economy is worth revisiting right now given the decline in oil price and the effects on the state revenue forecast.