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-- some great news from the northern plains the Interior Department fighting twice as much shale oil and three times as much gas.
As previously estimated.
In the Bakken three forks formation so what does this mean.
-- the state of North Dakota joining me now a senator John Hogan.
A Republican from the state.
I'll tell you what it means first off in terms of tax revenue is I -- right now the state is taking in just under billion dollars from both natural gas and oil.
So that's going to jump to two to three billion.
That's amazing what -- -- with all that tax revenue.
Well Melissa good to be with you this is really good news for North Dakota it's good news for the country the US GS estimate went from three point six billion barrels to seven point four billion barrels.
And a top end is eleven point four billion barrels of oil.
In North Dakota in the -- and the three forks industry thinks that's actually -- That means a lot of energy that means a lot of jobs and as you say our state financially were very strong we have no debt.
We have big reserves and obviously were reducing taxes.
Yeah I mean if you look at the revenue that it's gonna bring into the stay in one of the reasons why these numbers -- has I've followed energy for a long time as technology advances -- you get more familiar with the formations.
You do generally realize that there is more there than you originally thought you get older with the estimates of what -- -- this is not totally am comment.
But it's creating existing problems for your states for example.
Is giving us signing bonus to potential hires -- 300 dollars just to get people to work there because there aren't -- people in the state.
To feel all the jobs you have which is incredible.
I mean what I think when we have other states where there's so many people that are unemployed.
Burger King is offering managers 5000 dollars just to sign on you're unemployment rate is 3.3.
Percent do you have how losing.
For all the people that you need to bring in in order to fill these jobs I mean how are you how -- -- state dealing with these.
Problems which are great problems to have a -- nonetheless.
Well almost a year -- your right on the mark first you're right about.
The amount of reserves continuing to go up as we advance the technology which were doing producing more oil with better environmental stewardship.
But you're also right in terms of the impacts were not -- fastest growing state in the country one of the reasons I -- US GS to do the updated study.
Is to attract more private investment.
So we can address quality of life issues like housing restaurants stores movie theaters shopping centers.
Air service all these things we need private investment and private to -- development.
To go along with the public infrastructure the we're developing like.
Roads and pipelines and water supply and all those things and that's also why work so hard on things like the keystone XL pipeline.
We needed the infrastructure.
To deal with the energy that we're developing for this nation.
Yes absolutely -- let's talk about housing first.
Near the Willis -- airport I was reading an article -- at a decade ago the land was worth about 500 dollars an acre now it's selling.
For as much as a 180000.
Dollars an acre over ten years -- companies like KKR coming in.
To build big multifamily units 727.
Single family homes how are you attracting more investment like that to come -- And put up more promising given them tax incentives -- -- what do you do.
Would you be absolutely -- -- providing all kinds of it incentives in terms of building up creating a good business climate to attract investment.
But that's exactly what this US GS updated -- valuation of our reserves was all about this shows.
That this this energy play is going to be a long term play both an oil.
And natural gas that they they indicate we have three times as much natural gas is a year earlier estimate almost seven trillion cubic feet.
So that helps attract this investment because developers and investors whether it's housing or stores or anything else understand.
That this is going to be a long term play.
Yeah and that we're attracting people to development so that there are going to be able to recoup their investment that's vitally important to address the needs that you identified yet.
You're your own emerging market a lot of people saying North Dakota the smartest state in the nation -- -- California and New York.
Both have huge -- pension liabilities they could be doing the same thing and earning this money they have the same natural resources but they're just not doing it.
Senator how -- congratulations and thanks for coming -- Thanks less appreciated.
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