Replies

While that may be the case, there is also this:

Montana's oil industry is experiencing a resurgence, particularly in the eastern part of the state, driven by activity in the Bakken Formation. Although the Bakken is often associated with North Dakota, it was first discovered in Montana, and recent developments show a shift in drilling focus back to the state.

The Bakken Formation, part of the larger Williston Basin, extends into northeastern Montana, where the Elm Coulee field, which began production in 2001, was initially the most prolific in the basin.

While production declined from its 2006 peak of nearly 100,000 barrels per day as activity moved to North Dakota, Montana's annual crude oil production has increased for three consecutive years, reaching 74,000 barrels per day in 2024, the highest level since 2015.

This resurgence is fueled by new data indicating that the Upper Bakken layer in Montana, previously thought to be less productive, is yielding wells with a better oil-to-gas ratio and slower decline rates, making it economically viable.

This has led to a rise in drilling activity, with Montana's rig count increasing significantly and the state issuing a record number of oil drilling permits in recent years.

The boom has transformed towns like Sidney, Miles City, and Glendive, bringing rapid population growth, infrastructure strain, and economic development, though also challenges like rising rents and traffic.

The economic impact is substantial. In 2021, the natural gas and oil industry supported nearly 57,000 jobs and contributed over $7 billion to Montana's economy.

Oil tax revenue has surged, increasing from $13 million in 1995 to $92.7 million in 2024, with additional income from corporate and individual taxes, as well as royalties from state and federal lands.

However, the boom's sustainability is tied to oil prices, and the state's pipeline capacity is already at or near its limit, forcing some operators to temporarily close wells due to a lack of transportation options.