Skip to main content

Are communities really making money off of oil and gas drilling if they have to spend nearly all of the tax revenue building infrastructure to support oil and gas drilling?

Drilling the Bakken Formation

The state should invest up to $5 billion in northwest North Dakota communities with the most oil activity, the president of the North Dakota Petroleum Council said Wednesday.

Ron Ness, while testifying to a group of legislators meeting in Williston, said communities need significant resources to do long-range planning, but the state’s grant program for those areas is only helping them react.

Ness called for a five-year plan with $800 million to $1 billion per year invested in schools, roads and infrastructure for communities in the core areas of the Bakken. [...]

The industry paid $1.3 billion in oil and gas production tax last year, and will pay even more this year, Ness said. Those dollars should be targeted at the counties with the greatest oil activity, he said.

It makes oil and gas drilling sound like a Ponzi, doesn't it? You'll make lots of money eventually, but only if you keep re-investing!

As places like Virginia consider whether to allow oil and gas drilling, politicians like Gov. Bob McDonnell make it sound like every penny of tax revenue will go to existing roads and schools. But if the oil and gas industry expects the money to be spent on supporting the industry, how much will really be left for your community?

And that's to say nothing of the societal costs.

"Just about anybody I talk to that's a neighbor — and some of them are getting wealthy — are sick of it. It's never going to be the same in this country, and they're starting to realize that we had it kind of good, even though we weren't No. 1 in oil and we weren't the No. 1 state economically," North Dakota rancher Donnie Nelson told NPR. "We had a good life up here."

Cross-posted from The Green Miles

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site