With highly successful new developments in North Dakota oil production, it makes good sense to explore all options regarding a new refinery here. We have formed a task force to do so.
Currently, North Dakota produces more oil than it refines - more than twice, in fact. There is only one refinery in the state, located in Mandan. Keeping more of this resource here could create many positive opportunities for our state. It could also help mitigate high fuel costs.
One possible option is that the state could invest in such a venture. This refinery could be fully state-vested or built as a private/public partnership. North Dakota has a very successful state-owned bank and mill. In this time of new North Dakota oil discovery and high national energy demands, a state-invested refinery could have similar results. Facility construction, maintenance and operation would create good-paying jobs. Revenue garnered from refining could be placed in the state's general fund like the other state-owned businesses.
In addition, we are looking at more options. Further incentives for a fully private refinery like the Mandan facility will be analyzed, too.
During last harvest season, a fuel shortage plagued many of our farmers. At that time, North Dakotans were paying the highest fuel prices in the continental United States. Another oil refinery here could have helped the situation.
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Right now, an additional refinery could also help lessen the $3 per gallon gas we're paying.
Presently, our state is seeing frequent new oil discoveries. Drilling rigs have been popping up all across western North Dakota. Experts have said the Bakken Shale Formation, which partially covers western North Dakota, holds tremendous amounts of petroleum. The product being pumped out of current Bakken wells is high-quality sweet crude - greatly prized by refiners.
Also, the Williston Basin is only 30 percent to 40 percent developed compared to Texas. There's much oil in that area, too.
Our country's appetite for energy will continue to balloon. North Dakota will have tremendous future opportunities to provide forms of energy that will drive our economy. There has not been a domestic refinery built in nearly 30 years. A new North Dakota refinery would help reduce America's dependence on foreign energy. Currently, our country imports two-thirds of its energy. We also use one-fifth of the world's oil, 21 million barrels a day. Much of this petroleum comes from unstable portions of the world.
With the highly successful new developments in North Dakota oil production, discussion about a new North Dakota oil refinery just makes good sense. This facility could benefit our state and country. Our task force will look at all options regarding this venture.
Onstad, D-Parshall, N.D., has represented District 4 since 2001. Meyer, R-Dickinson, N.D., represented District 36 from 1997-99 and from 2005 to the present.
Other views: Discussion of a new oil refinery makes sense for North Dakota By Rep. Kenton Onstad and Rep. Shirley Meyer 20080117
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