Dakota Access Pipeline Central to Bakken Output as ND Marks 75 Years of Oil

North Dakota marks the 75th anniversary of its modern oil industry this month, an industry now producing over 1 million barrels per day and ranking as the country's third-largest producer, according to Bing News. The discovery well near Tioga on April 4, 1951, launched a sector that now supports about 63,000 jobs and generates nearly $50 billion annually for the state.

The Dakota Access Pipeline (DAPL) is a critical piece of infrastructure for moving that volume, carrying about half of North Dakota’s daily output, or roughly 700,000 barrels per day, to refineries in Illinois and along the Louisiana Gulf Coast. Ron Ness, president of the North Dakota Petroleum Council, emphasized its role in a statement.

“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, according to the source. “It transports nearly 50 percent of North Dakota’s daily oil output."

He noted the pipeline provides Bakken operators with reliable access to key markets that value the region's high-quality crude. “It operates safely and efficiently while reducing the need for oil transport by truck or rail,” Ness added.

The pipeline's history has been shaped by federal policy shifts. The Obama administration halted work in 2016 for additional environmental review following protests. The project moved forward under an order from President Donald Trump in 2017 and entered service later that year. It remained operational under President Joe Biden during court-ordered reviews.

The industry generates over $4 billion in annual taxes and royalties for North Dakota, funding infrastructure, schools, property tax relief, and contributing to the state’s $14 billion Legacy Fund. The Mandan, Hidatsa, and Arikara (MHA) Nation also relies heavily on energy revenue.

“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,” Ness said. The MHA Nation depends on oil and gas revenue for over 80% of its government services and uses DAPL to move most of its oil.

With only an estimated 15% of known oil resources currently recoverable, the potential for future growth in the Bakken remains significant, contingent on technology and market access. The continued operation of key infrastructure like DAPL is framed as essential for that future.

“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 concluded.