05-14-2015 - Laserfiche WebLink

Updated 05/22/2015 5 In reviewing the month of January 2015, the U.S. Energy Information Administration reported that 437,000 barrels of Bakken crude oil were shipped daily from North Dakota to East Coast refineries. This equals 13.8 million gallons of oil a day. A 2013 economic impact study published by NDSU in March 2015 states that impacts in North Dakota from the oil and gas industry totaled nearly $43 billion. Transportation of oil and gas impacts was estimated at over $440 million. The secondary impacts included an additional $375 million. Economic Impact Economic impact can be defined as the macroeconomic effect on employment and incomes produced by a decision, event or policy. Because of the economic relationship between the FM MSA and the surrounding region, activities in the FM MSA can have far-reaching impacts. Economic impact includes:  Direct and indirect jobs created  The wages paid to these direct and indirect jobs  New residents to the city/county to fill new jobs  Taxable spending by workers in the city/county  Number of new residential units constructed in the city/county  Taxable value of new residential units  Taxable value of commercial assets such as land, buildings and equipment These economic impacts can then be translated into additional costs and benefits for local taxing districts to determine the fiscal impact. These include: Benefits Costs  Sales and Use Taxes  Costs for Providing Services to New Residents  Property Taxes  Costs of Providing Utilities  Utility Revenues and Utility Franchise Fees  Costs for Educating New Students  Other Taxes and User Fees  Additional State and Federal School Funding (Above information courtesy of Impact DataSource, Austin, Texas.) Indirect revenues, jobs and salaries include businesses that may have supplied goods and services to the primary firm, such as equipment suppliers, construction companies, maintenance firms, etc. Direct revenues, jobs and salaries include companies that may have supplied goods and services to workers of the primary company, such as restaurants, retail stores, banks and service supported business. Role of Primary Sector in FM MSA Economy The GFMEDC has identified over 220 primary sector companies in the FM MSA. Of these companies, approximately 90% are in Cass County and 10% are in Clay County. Well over 17,000 people are employed by these companies.