ND Industrial Commission Commits $500M to Gas Pipeline as Oil Marks 75 Years

The North Dakota Industrial Commission is committing up to $500 million toward a new natural gas pipeline project, according to a state news report published April 29. This major state investment in infrastructure comes as North Dakota marks the 75th anniversary of its modern oil industry, which remains heavily dependent on pipeline capacity to move its prolific output.

Crews first struck oil near Tioga on April 4, 1951. Today, North Dakota produces more than 1 million barrels per day, ranking as the country's third-largest oil producer, according to Bing News. The industry supports about 63,000 jobs and generates nearly $50 billion annually, contributing over $4 billion in taxes and royalties that fund state infrastructure, schools, and property tax relief.

Pipelines move much of that volume. The Dakota Access Pipeline (DAPL) carries about half of North Dakota’s daily output, roughly 700,000 barrels per day, to refineries in the Midwest and Gulf Coast. Ron Ness, president of the North Dakota Petroleum Council, emphasized the pipeline's critical role. “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.

Ness noted the pipeline provides reliable market access. “It operates safely and efficiently while reducing the need for oil transport by truck or rail,” he said. The benefits extend to tribal nations, including the Mandan, Hidatsa, and Arikara (MHA) Nation, which relies on oil and gas revenue for over 80% of its government services and uses DAPL to move most of its oil.

The pipeline's history has been politically turbulent. The Obama administration halted work in 2016, but the project moved forward under President Donald Trump in 2017 and entered service later that year. It remained open under former President Joe Biden during court-ordered reviews.

The state's new commitment of up to $500 million for a natural gas pipeline, reported April 29, signals continued focus on expanding and securing transport infrastructure for all Bakken energy products. This investment aligns with the industry's ongoing evolution, where about 15% of known oil resources are currently recoverable, a figure that could increase with new technology.

For Bakken operators and royalty owners, the dual developments underscore the foundational importance of pipelines. DAPL ensures improved pricing and market stability for Bakken crude, while the state's financial commitment to new gas infrastructure aims to support future growth and efficiency across the sector.