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Labor Shortage Slows Oil Production In Major Fracking State

The shortage of workers has led to a significant drop in crude oil production in North Dakota, the second-largest U.S. oil hub behind only Texas.

Lack of manpower has caused it oil production to be “smooth as a punk,” said North Dakota State Director of Minerals Lynn Helms. he said Bismarck pulpit. Energy companies are struggling to find workers who need to do heavy work – water, sand and chemicals into wells to extract oil – related to fracking.

“Most of these people went to Texas, where the activity was much higher than where they didn’t have a winter and where they had jobs,” the Tribune wrote. “Stimulation of wages and housing and things like that are needed to get them here.”

Across the state, there were eight crews working on drilling oil wells in North Dakota, Helms told the Tribune. However, at least 20 crews are needed to meet current oil production needs, he added. (CONTACT: ‘Good sign’: Fewer people report unemployment in states that lower the federal bonus)

The pipeline, which runs through North Dakota and Minnesota, will be seen near Warne, Minnesota on June 5, 2021. (Kerem Yucel / AFP via Getty Images)

The pipeline, which runs through North Dakota and Minnesota, will be seen near Warne, Minnesota on June 5, 2021. (Kerem Yucel / AFP via Getty Images)

While the state’s economy has recovered from the pandemic recession, North Dakota’s oil production only increased slightly in May, the Tribune reports. North Dakota production in the state increased by an additional 4,000 barrels per day, a slight increase from the 1.13 million barrels produced per day.

North Dakota was responsible for 10.4% of all U.S. oil produced last year, second only to all states. according to to the Energy Information Administration (EIA). Texas produces 43% of America’s oil reserves.

Besides, the US was the largest oil producer last year it accounted for 15% of the world’s supply, the GATT said.

The oil and gas industry is a major driver of economic activity in North Dakota, two recently published research found. The industry generated $ 40 billion in total trade, created 60,000 jobs, and generated $ 3.8 billion in tax revenue in 2019, the last year that such data was available.

“These studies highlight the vital importance of the oil and gas sector for our state’s budget, economy and communities, as well as the need for state and federal policies that promote the responsible development of our abundant mineral resources,” said Lt. Col. Brent Sanford of North Dakota. he said reporters in March.

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https://dailycaller.com/2021/07/21/labor-shortage-crude-oil-production-north-dakota/ | Labor Shortage Slows Oil Production In Major Fracking State

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