Numerous stories and sources document the growth of the North Dakota economy over the last decade. The North Dakota economy grew by leaps and bounds over this time, and economic development started in many industries and in many counties. Recently, somebody asked me about the contribution of oil over the last several years. This question is in contrast to the often asked question regarding which industry is most important in the North Dakota economy currently.
The subtitle of this post could be bludgeoning the reader with numbers, but oh well.
As I mentioned in last week’s post (available here) there was a scheduled update to the detailed data on state-level real GDP this week. With any update like this there are many different dimensions to consider. The first aspect to consider is the release of new data. New data provides us an updated look at the state of the economy and (hopefully) a better sense of the good, the bad, and yes, the ugly. In these releases there are also updates to the older data. More complete information is available as time passes so we get a better look at what happened in the recent past.
In the last several years the majority of attention regarding energy production in North Dakota focused on oil and gas. The increased contribution of energy (oil and gas in particular) to GDP growth was significant as I showed before. The other day I watched a train with at least fifty cars full of coal go by and I wondered what happened with coal production over the last few years.
I imagine the different sectors of economic activity in any state argue about their relative importance. Lately the contest in North Dakota has been about the relative importance of agriculture and mining. My personal opinion is that if the data support an actual argument of this point than you are fortunate enough. These debates rage though and so I tend to investigate. There are many different ways to approach these types of questions but I am not going to go through a refereeing of different methods. I will just go through what I think the data are trying to impart to us.
Most recent discussion of oil markets focused on prices and the volatility of price movements. These are surely very important, and the driver of almost everything else happening in energy markets. Looking at North Dakota here is the percentage change in labor force (year-over-year) for North Dakota as a whole and for the four core Bakken oil counties.