585: 'We're going to need massive amounts of CO2'

It's no secret that the oil industry is central to North Dakota's economy. Still, it's surprising even for in-the-know citizens to look back at the remarkable growth of that industry over the last couple of decades. The North Dakota Petroleum Council routinely commissions studies into the economic impact of their industry, and the findings are eye-popping.

The first study was conducted in 2005. "At that time, the oil and gas industry, we were producing 92,000 barrels of oil a day. We had 3,300 mostly tired oil wells from non-Bakken formations. We employed about 5,000 people," NDPC President Ron Ness said on this episode of Plain Talk. "Today we are a three $3.2 billion industry."

"We employ 63,000 people," he continued. "We produce 1.2 million barrels of oil a day. "It's as you said, the rise has just been incredible."

But what about the future? Ness says there are opportunities to find new avenues for growth that North Dakota must seize lest oil production and its attendant boons in terms of economic impacts and tax revenues ebb.

"With the best technology in all the world focused on this resource, out of every 100 barrels of oil, we're still leaving 85 in the ground," he said. "If we can get another 15%, that's a doubling of the ultimate recovery, and it will add generations and generational wealth and opportunities for future North Dotans. Without that, we're going to we're going to deplete this resource."

How do we seize this opportunity?

"We're going to need massive amounts of CO2," Ness said, pointing out that the NDPC, along with partners at North Dakota's universities, have been pursuing enhanced oil recovery methods using carbon dioxide. "We've been studying enhanced oil recovery through the use of carbon dioxide since 20 3 with the [University of North Dakota Energy and Environment Research Center]," Ness said. "The uniqueness about carbon dioxide and what it does is it mobilizes new oil off the rock. You've got to keep that that pressure up in that reservoir. Natural gas will help that. It'll do some of that, but CO2, as proven by EERC in Bakken rock, will mobilize new oil."

Also on this episode, Sen. Paul Thomas, a Republican from Velva, joined us to discuss the rural perspective on the property tax debate. One concern he has is that the focus of House Bill 1176, which was introduced by Rep. Mike Nathe and is supported by Gov. Kelly Armstrong, is exclusively on property tax relief for primary residences. Thomas argues that this could create a political unbalance that has the spending promoted by a majority of voters supported by a minority of farmers and business owners.

"In many of the counties, agricultural land provides the majority of the tax base for that county," he said. "In certain communities, obviously if you go to you know Ward County or you go to Cass County with the larger cities, it's not going to be as high a percentage, but when you get out in the in the other rural counties, the agricultural land is providing a majority of the tax."

HB1176 provides property $1,450 tax credits for primary residences. Thomas says he'd like to see that combined with House Bill 1168, sponsored by Rep. Scott Louser of Minot, which buys out school credits. The combo, Thomas argues, would deliver the direct and dramatic relief for homeowners that Gov. Armstrong has asked for while also delivering some relief to business owners and farmers.

This episode is presented by North Dakotans for Public Schools. North