North Dakota energy sector sees slowed growth in third quarter sales
Kristen Jones
Farmer Staff Writer
The energy sector saw the lowest growth rate of the year in the third quarter according to the Taxable Sales and Purchases Report released by the Office of the North Dakota Tax Commissioner. In the first two quarters of the year, the energy sector posted growth rates over 50 percent; however, in the 2023 third quarter that growth had slowed to only around 14 percent above 2022.
According to Brady Pelton, Vice President and General Counsel of the North Dakota Petroleum Council, there are many factors that can make the growth rate of the industry decline, and it can be a combination of things as well.
“Well, I think there’s a lot of different factors in that [change]. Inflation, obviously in the last year, really ticked up to a level that we haven’t seen in a long, long time, so that obviously increases the amount of taxable sales and purchases.