An Overview of the Oil Impact

Exxon spends $1.6 billion on North Dakota field

193 rigs are drilling--7,400 wells

Airlines add service in North Dakota

Budget Surplus Estimated at $1.6 Billion

ND Oil Rises To Record 20.8 Million Barrels in July

$1.2 billion fertilizer plant planned for Eastern North Dakota

$17m Housing Project underway in Watford City

Railroad Beefs up to Handle Crude Oil Shipments

Study: $7 Billion for North Dakota Road upkeep over 20 years

Education Economic Development

Energy Development Manufacturing

Value Added Agriculture Technology

Quality of Life

On Energy…All of the Above Strategy2001..Empower North Dakota

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It's a 25-thousand square mile "sea of oil", that according to the USGS contains as much as 4.5 billion barrels of recoverable crude oil. North Dakota state officials believe that number could be as high as 11 billion barrels.

A typical 2010 North Dakota Bakken well will produce for 28 years

In those 29 years the average Bakken well:◦ Produces more than 575,000 barrels

of oil

◦ Generates over $20 million net profit

◦ Pays royalties of $6,900,000 to mineral owners

◦ Pays salaries and wages of $1,550,000

Taxes = $4,250,000 $1,930,000 gross

production taxes $2,000,000

extraction tax $320,000 sales tax

Expenses◦ Pays operating expenses

of $1,900,000◦ Costs $8,500,000 to drill

NORTH DAKOTA Aug 2012 Jul 2012M/M Numeric

Change

M/M Percent Change

Aug 2011 Y/Y Numeric

ChangeY/Y Percent

Change

Total Employment 418,300 416,800 1,500 0.4% 392,300 26,000 6.6%

Mining & Logging 22,800 22,500 300 1.3% 17,100 5,700 33.3%

Construction 30,700 30,700 0 0.0% 27,900 2,800 10.0%

Manufacturing 25,200 25,200 0 0.0% 23,600 1,600 6.8%

Wholesale Trade 25,700 25,700 0 0.0% 22,500 3,200 14.2%

Retail Trade 45,000 45,600 -600 -1.3% 44,800 200 0.5%

Transportation, Warehousing, & Utilities 22,300 22,200 100 0.5% 19,100 3,200 16.8%

Information 7,600 7,600 0 0.0% 7,000 600 8.6%

Financial Activities 22,400 22,300 100 0.5% 21,100 1,300 6.2%

Professional & Business Services 34,200 33,800 400 1.2% 31,200 3,000 9.6%

Education & Health Services 59,100 58,900 200 0.3% 56,800 2,300 4.1%

Leisure & Hospitality 36,900 37,000 -100 -0.3% 36,000 900 2.5%

Other Services 16,500 16,000 500 3.1% 15,500 1,000 6.5%

Government 69,900 69,300 600 0.9% 69,700 200 0.3%

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2010 2015 2020

Gross State Product

$35B $42B $50B

Total Employment

375,000 442,000 470,000

Unemployment Rate

3.8% 2.3% 3.0-3.5%

Personal Income Growth Rate

9.4% 5.7% 4.0-6.0%

Population 672,000 708,000 750,000

Per Capita Income

$42,890 - $52,000

Average Wage $42,068 - $50,000

Note: All $ are current 2010, not inflation adjusted**2015 data – as forecast by Moody’s Analytics

Dumpster Business—20 Tons a Day

Heckmann Corporation and Power Fuels to Merge◦ 47 Employees in 2005 to over 1,000 Today

MAC Heaters—Supplier of Industrial Heaters Packet Digital…Battery Technology Oil Patch Tours--$325 Stop Sensor…Trailer Alignment Busiest McDonalds in America..Williston, ND Wal-Mart…Pallet Shopping and Camper City Earn $3,000 a night as a boomtown stripper Equipment Sales Construction and Dirt Moving Business

An Overview of the Oil Impact