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-- North Dakota Montana almost more oil than they know what to do whip it out new ocean of it has been discovered.
According to the interior department of regions Bakken Formation has double the oil originally thought and three times the natural gas.
But will region crack under the weight.
Of this huge fine joining me with more Steve Moore from the Wall Street Journal and Stephen -- editor of the -- report.
Guys thanks so much for joining us I'm Stephen let me start with you Stephen shark I've got to be very specific here with everyone's got the same name.
How much oil and natural gas is this I -- -- some perspective to people out there who aren't in the industry.
Well it's amazing Melissa it's a crazy amount write it.
Well put -- this by North Dakota is now producing upwards of 790000.
Barrels a day of crude oil what does that mean.
The state of North Dakota now is the tenth largest producer.
They produce fifty more priest 50% more oil that Ecuador.
And if -- 8% more than Qatar so that is it obviously a significant amount of what us it is absolutely incredible.
Now when you look at yes we look at the trade balance numbers to -- Trade -- and that's it is falling it's falling in great part because what we are importing less cruel and we are exporting more -- -- Why it is a -- beautiful things Steve Moore let me bring you land because along what this is a huge windfall in tax revenue.
Fourteen states I mean it's incredible right now.
This year they're projected to get just under a billion dollars in tax revenue from oil and gas so that could go up to between two and three billion dollars.
The economic boom to the region.
Age it generates about 22 billion dollars right now and oil -- that doesn't count the gas.
That could go up to.
46 billion dollars per year.
I -- that's a lot of well.
Yeah there's nothing will not like about the story and I'm by the way it's not just tax revenue your right by the way the long term.
Solution to a lot of these states pension problems you know the time bombs -- -- it's a drill for oil and then imposed severance taxes and use that money.
The pay off some my you know -- so that's the way -- the only way out for California quite frankly about a -- California's Monterey shale.
Has about as much oil was as they have been and not North Dakota so that's another state that could be a major oil producer let's not forget by the way -- said that.
That despite what's going up North Dakota which is a fantastic story they even bigger story is that just the last five years Texas has doubled there -- their output of oil so Texas is now producing about as much oil is the Saudi Arabia does so.
It is an amazing story the average job by the way in that industry analysts a 100000 dollar and a 100000 dollar a year salary -- -- that's.
Twice what the average private sector worker -- we should be driller like crazy we should his Beagle -- -- Again these are fantastic jobs -- -- beat you to the punch because I was -- -- with that tax revenue is that there are other states that are desperately.
Desperately needed this money and rather than leaving ordinary workers dry.
They can create this new industry with new jobs -- generate new revenue.
Stephen shark a New York is another one I mean Steve Moore mentioned California which -- -- fabulous -- show that they refuse to take advantage.
We're looking at the screen of how much revenue could possibly be generated.
New York is another one right I mean -- -- terrific formations in new York and lord knows we need a tax revenue here.
Oh absolutely debating runs all the way up through new York and you also have.
The Utica shale in eastern Ohio Melissa in the springs are very good standpoint because we talk about moderation out in California.
If you look at the counties in the Monterey shale unemployment in those counties is upwards of 20%.
Right now look at eastern Ohio Youngstown Ohio the -- is the the -- -- house.
-- unemployment peaked during the recession at 14%.
It's now back below 9%.
Because you have manufacturing base that is now growing in once.
Steel mill towns along the Ohio River east hounds are finding you based now because they're serving the industry -- in the -- And various shows and -- Smart -- point.
Yeah he -- high high class problems that when you look at north -- they have 3.3 unemployment.
3.3 percent -- what Britain which -- some problems though because they can't find anyone to work at McDonald's because like you said it.
These jobs -- 100000 dollar job so why would you go flip burgers they can't get anyone to do -- -- they're giving up 300 dollar signing bonus.
At Burger King managers get 5000 dollar signing bonus to come work as a manager at the same time land in Willis Stan.
Used to go for 500 dollars -- -- over a decade ago it went from 500 dollars to a 180000.
These high class problem Steve Moore but there is nonetheless.
Yeah well when I was I've been there Willis said -- went up but you have a -- -- -- I had about I was there last year I had spent 500 dollars is it about -- I'll -- There's nowhere to stay ultimately -- and that's a nice but it's a nice problem to have this meant that they have not by the way let me crackdowns on the Melissa yeah I know the official unemployment rate is 3.3 percent in North Dakota but -- actual unemployment rate is negative they actually had more on fill jobs that -- up.
However I zipping around -- lower watching BC here or our New York I say.
Go to North Carolina -- jobs that are.
Why isn't negative but it still anti recorded at 3.3 blitz well because you know they're counting people just really out looking for jobs and my point -- there are probably 25 or 30000 jobs that are unfilled and and as we said earlier doors are really high paying job.
They do you really important point of the story is this Melissa isn't this ironic that -- greenest president we've ever elected in American history.
We'll have -- presided in eight years over the biggest oil and gas boom in American history.
It it -- right at the break point and not it is really ironic and house to do with technology.
Bet he probably wasn't aware of as it was happening I mean it it's coincidental but it's very interesting our guys to do with the banks -- -- coming debentures are -- I think that bush I didn't wanna say what you get our --
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