By Sen. Frank Lasee, who represents the
First Senate District in Northeast
Wisconsin.

The Benefits of Oil

In just the six years between 2006 and 2012, North Dakota’s per capita income (its total economic output divided by its population) shot up from 38th in the country to 6th. How was this economic miracle possible? Because of all the 500ft wind towers that were built there. Just kidding. It’s because North Dakota chose to embrace its oil and natural gas resources.

There are more people working in many different sectors because of this new oil boom. North Dakota had the highest personal income growth of all fifty states for the fifth time in the past six years. Each of those years incomes increased over 10%. Each of those years nearly half of the economic growth in North Dakota is because of oil, natural gas and construction caused by oil & natural gas harvesting.

States economies improve when natural resources are harvested. The unemployment rate in North Dakota is 3.2%, Wisconsin’s is 6.7% and the national unemployment rate is just below 8%.

In North Dakota, growth has resulted in more growth. When companies drill for oil, they hire workers, engineers, equipment manufacturers (who often employ union labor), transportation providers (more union labor), and all kinds of other work is created. The workers spend their money on homes, amenities, and entertainment, which means more jobs in all kinds of industries. Where there used to be a few people, now hotel rooms are scarce, restaurants have a wait and the local McDonalds is offering a signing bonus to people who want to work.

Oil and natural gas pay taxes and power this economic recovery.

In Wisconsin, we have frac sand mining and soon, iron mining. Too bad we aren’t enjoying the economic progress that North Dakota is.

Wind and solar power: unreliable and expensive, taxpayer and electric-user subsidized