(The Center Square) – Crews struck oil near Tioga on April 4, 1951, launching North Dakota’s modern energy industry. The state now marks 75 years since that discovery.
North Dakota now produces more than 1 million barrels per day and ranks as the country’s third-largest oil producer. The industry supports about 63,000 jobs and generates nearly $50 billion each year.
The industry generates over $4 billion in annual taxes and royalties. The money helps fund infrastructure, schools, and property tax relief. It also built the state’s $14 billion Legacy Fund.
Pipelines move much of that oil. The Dakota Access Pipeline carries about half of North Dakota’s output, or roughly 700,000 barrels per day, to refineries in the Midwest and Gulf Coast.
The project has been tied up in politics for years.
The Obama administration halted work in 2016 and called for more environmental review after protests led by Native American groups.
In 2017, Donald Trump moved the project forward. The pipeline entered service later that year.
Under former President Joe Biden, the pipeline stayed open while federal agencies conducted additional court-ordered review.
Since returning to office, Trump has backed faster approvals for energy projects and more domestic oil production.
Ron Ness, president of the North Dakota Petroleum Council, said the pipeline plays a major role in the state and the country.
“The Dakota Access Pipeline is a vital component of energy infrastructure, not only for North Dakota’s oil production and economy, but also for broader American energy security,” Ness said.
“The pipeline transports nearly 50 percent of North Dakota’s daily oil output – approximately 700,000 barrels per day – to refineries in Illinois and along the Louisiana Gulf Coast,” he added. “By delivering domestically produced crude to these markets, it helps reduce reliance on foreign oil and minimizes supply disruptions for Gulf Coast refiners.”
He said it also improves access to markets and reduces reliance on rail and truck transport.
“The pipeline provides North Dakota producers with reliable access to key markets that value high-value sweet crude,” Ness said. “It operates safely and efficiently while reducing the need for oil transport by truck or rail.”
Ness said the benefits extend to Native American communities.
“Both the State of North Dakota and the MHA Nation benefit through increased tax revenues and royalty payments driven by improved pricing for Bakken oil,” he said.
The Mandan, Hidatsa, and Arikara Nation relies on oil and gas revenue for over 80% of its government services and uses the pipeline to move most of its oil.
About 15% of known oil resources are currently recoverable. That figure could increase with new technology.
“Overall, the Dakota Access Pipeline has been a game-changing infrastructure, supporting tens of thousands of jobs in the oil and gas sector and strengthening the nation’s energy security,” Ness said.
Industry leaders will discuss the anniversary at the Williston Basin Petroleum Conference in May, where they plan to focus on the industry’s past and future.
