North Dakota Marks 75 Years of Oil, Commits $500M to Gas Pipeline

North Dakota's oil industry marks its 75th anniversary this week, an event underscored by a major new state commitment to pipeline infrastructure. The North Dakota Industrial Commission has approved a plan to commit up to $500 million toward a new natural gas pipeline project, according to the Bismarck Tribune.

This financial commitment comes as the state reflects on the discovery of oil at the Clarence Iverson No. 1 well near Tioga on April 4, 1951, which launched its modern energy era. Today, North Dakota produces over 1 million barrels of oil per day, ranking as the nation's third-largest producer, and supports approximately 63,000 jobs, generating nearly $50 billion annually. The industry contributes over $4 billion in yearly taxes and royalties, funding state infrastructure, schools, property tax relief, and the $14 billion Legacy Fund.

Pipelines remain central to moving this production. The Dakota Access Pipeline (DAPL) alone carries about half of the state's daily output, roughly 700,000 barrels per day, to refineries in Illinois and the Gulf Coast. The pipeline's history has been politically charged, with the Obama administration halting work in 2016 for further environmental review following protests. It moved forward under an order from President Donald Trump in 2017 and entered service later that year, remaining operational during subsequent court-ordered reviews under the Biden administration.

Ron Ness, president of the North Dakota Petroleum Council, emphasized DAPL'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 a report from AOL News. “It transports nearly 50 percent of North Dakota’s daily oil output... By delivering domestically produced crude to these markets, it helps reduce reliance on foreign oil.”

Ness added that the pipeline provides reliable market access for Bakken sweet crude, operates safely, and reduces the need for transport by truck or rail. He also noted benefits for tribal nations, stating, “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.” The Mandan, Hidatsa, and Arikara Nation relies on oil and gas revenue for over 80% of its government services and uses DAPL to move most of its oil.

Looking ahead, only about 15% of known oil resources in the state are currently recoverable, a figure that could grow with new technology. The simultaneous celebration of the industry's past and the new $500 million investment in gas pipeline infrastructure highlights the state's continued focus on building out the midstream network essential for the Bakken's future.