Why North Dakota Is Booming And California Isn’t

North Dakota has an unemployment rate consistently under 4%. California, on the other hand, consistently has one of the highest unemployment rates in the nation, ranking in the double-digits.

Why is that happening? Part of the reason is that North Dakota allows a relatively free market in energy production, and California doesn’t:

How did North Dakota pull it off? Oil production has driven the recent boom. Drilling restrictions in Alaska, the Gulf of Mexico, and even Canada have given North Dakota an opportunity to expand its oil industry substantially. North Dakota now accounts for 6 percent of U.S. domestic oil production and already ranks fourth in the nation behind Texas, Alaska, and, yes, California. Unlike California, however, North Dakota is a fairly new player in the oil-production market. The state imposes no energy-efficiency resource standard for electricity or natural gas, and it has no mandatory statewide residential or commercial energy code. North Dakota lawmakers have let market demand dictate coal and oil production. According to North Dakota state senator John Hoeven, the state government’s approach to energy is to “develop all of our energy resources, both traditional and renewable . . . in a way where we incentivize new technologies to create more energy more dependably and more cost-effectively with good environmental stewardship.”

While California is rich in both conventional and renewable energy, gridlock in the state legislature has hampered development of these resources. Unlike North Dakota’s officials, who welcome the economic growth and new revenues, California lawmakers seem intent on reducing the state’s role in domestic oil production. Legislators have imposed laws much stricter than federal standards and worked aggressively to subsidize alternative energy sources and mandate their use. California’s Global Warming Solutions Act of 2006 and subsequent legislation—requiring that the state obtain at least one-third of its energy from renewable sources such as wind, solar, and geothermal—will impose onerous costs not only on businesses, but on every ratepayer and consumer in the state. Estimates vary, but at least one study projected that the law would cost the state economy $183 billion—a staggering burden for Californians already struggling under the highest energy prices in the nation.

I’m often very critical of North Dakota’s Republican leadership. I don’t like how they’ve expanded government on the back of oil production revenues. That being said, one thing North Dakota generally gets right is energy policy, and that policy is basically just letting energy companies do their jobs with the government stepping in only to enforce certain common sense regulations.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • ec99

    Subject: Coyote

    The Governor of California is jogging with his dog along a nature trail.

    A coyote jumps out and attacks the Governor’s dog, then bites the

    Governor.

    1. The Governor starts to intervene, but reflects upon the movie “Bambi”

    and then realizes he should stop because the coyote is only doing what is

    natural.

    2. He calls animal control . Animal Control captures the coyote and bills

    the State $200 testing it for diseases and $500 for relocating it.

    3. He calls a veterinarian. The vet collects the dead dog and bills the

    State $200 testing it for diseases.

    4. The Governor goes to hospital and spends $3,500 getting checked for

    diseases from the coyote and on getting his bite wound bandaged.

    5. The running trail gets shut down for 6 months while Fish & Game conducts

    a $100,000 survey to make sure the area is now free of dangerous animals.

    6. The Governor spends $50,000 in state funds implementing a “coyote

    awareness program” for residents of the area.

    7. The State Legislature spends $2 million to study how to better treat

    rabies and how to permanently eradicate the disease throughout the world.

    8. The Governor’s security agent is fired for not stopping the attack. The

    State spends $150,000 to hire and train a new agent with additional special

    training re: the nature of coyotes.

    9. PETA protests the coyote’s relocation and files a $5 million suit against

    the State.

    North Dakota :

    The Governor of North Dakota is jogging with his dog along a nature trail.

    A Coyote jumps out and attacks his dog.

    1. The Governor shoots the coyote with his State-issued pistol and keeps

    jogging. The Governor has spent $0.50 on a .45 ACP hollow point cartridge.

    2. The Buzzards eat the dead coyote.

    And that, my friends, is why California is broke and North Dakota is not.

    • Wesbutte

      That is the best analogy I have ever read    Thanks.

    • http://proof-proofpositive.blogspot.com/ Proof

      That is a truly unfair analogy! You have not calculated the cost of the patch and solvent required to clean the governor’s gun afterwards, which will most certainly add another few cents to the mix. C’mon! Let’s be fair! 

  • Ratbite

    Amen but look what Californication has done for PCU(UND)!!!!!!! Kelly came here by way of Berkley.

  • Rick Olson

    Sheer brilliance!!

  • http://flamemeister.com flamemeister

    In California the conditions of life are so peculiar that one could expect, in the course of thousands of years, an entirely new species of man to be shaped. —C.G. Jung

    • Camsaure

      You may be right, just look at the “men” in San Francisco.

  • cylde

    Some men have been doing it wrong for thousands of years but there have been no pregnancies. The theory of evolution seems to have failed or those who can not recognize a sex organ would been self eliminated. Some identify the sex organ but not the right species but maybe the sheep like it.

    • $8194357

      ( Some men have been doing it wrong for thousands of years but there have been no pregnancies. )

      So in other words..”   the “state” is their surrogate? To get more of something “subsidize it”…PC police in the government, corperate work place, and “acadamia” watch over, protect, nuture and “BREED” it for them…HUH?

  • Michele

    This would be funny if it weren’t true…..

  • $8194357

    Straight to the point?

    Leftist international progressive UN Agenda 21 mission statement says in my somewhat simplified terms…(Get control of “all” natural resources, and control whatever the global culture “needs” to exist.)

    “intended” (unitended) consequences (in the name of) “group or cause”…..
     Just a little diagram I came up with years ago watching Billary sell us down the “global” river..

    (soviet style steering commitee aproach)
    Includes but not limited to:
    Vision Statements,Mission Statements, central planning finance and “collaboration”
    (the help of insiders selling out the nation or culture targeted),
    as well as the signing of “loyalty oaths”…Good team players needed for success. Overseas bank accounts to later be used as blackmail for assured “bi-partisian” success…

    When evil is called good and Good evil..WOE to that generation….When right becomes wrong…WOE to those who do these things, for “The Day” is at hand…

    We will all one day be at the “benevolence” of these international globalist fascist elietist social engineers when America falls from within as the ‘cultural terrorists” “envisioned” in there marxist mission statements of old…

    I went ND version hillbilly hand fishin and used their own “float a balloon” tactic first just to see if they were biteing? Sent a whole lot of my “thoughts and findings” to Comrad Kent and Lord Byron and cousin Earl, to see how big the “fish” were back in 2008 thru 2010…They were just to dang big for me to pull in, so now I just cry wolf on SAB and hope the military will break with “We the People” when the the ‘International game wardens” show up..
    They don’t like it much but if you come heavy with “Truth” on your hand and “Faith” on your foot they “just” can’t help but bite down on ya down there in the muddy dark water where they live…Jerked a few up wiggling and croaken into the “Son Light” and they just plain wanted the “darkness” they did their evil deeds in instead.
    Huh Earl? Huh Kent? Huh Byron????
    Corruption rules the day in DC and the UN, and we are headed for a very bumpy ride soon…The chickens are “indeed” coming home to roost but not like ole Barry mentor Jerimiah Wrights been tellin folks.
    If Barry can’t get the buddists, homosexuals,enviro wackos, communists and Muslim Jihadists, (sorry),(and of course the “universalist christians) and didn’t mean to leave out you Code Pink” feminists ect..ect..ect..to the globalist diplomacy table to make the “false” peace with Israel that will last 3 1/2 years, then the chosen one, Barry, is just the last pre-curser to the real deal IMHO..If he does all these things and “survives and heals himself” from a tramatic head wound?

    2000 zero zero its over…outta time..Iran drops the bomb and Armagedon is on the evening news for the whole world to see just as advertised in Revelations…A front row seat.
    .
    Of course I pray ‘m wrong as no man knows the hour or the day, but “all men” shall see the season draws nigh. Could be tommorow or 1000 years yet to come…But even so Lord Jesus, Marnatha Lord, Come Soon!

    God Bless and Keep you and yours now ,Hear?
    7point62

    EDIT:
    I just hate it when I can’t sleep at night, no?

  • http://nofreelunch.areavoices.com/ Kevin Flanagan

    Will ND kill their golden goose like other states have?

    • $8194357

      DC will give them the mandatory tools to do it…As all good submissive “soviet satelites” they will fall in line and “obey” for “the greater good” of mother Russia…
      EPA, BLM, Waterfowl Protection…Death by a thousand Federal cuts…..Punitive process from “every legal controlling agency” (insert Bill Clintons “There is no legal controling authority to prevent me from doing what I did here to see the flip side of this leftist big government ploy) (the rule of men above the rule of law game for further ‘regulations from on high) from DC and it will over whelm ND like everyone else soon enough…Ever look at those maps of the US where some “DC legal controling authority” has say over state and private properties? What an eye opener…Water fowl production contracts and agreements made back in the early sixties much like nuclear isotopes have a very long shelf life….
      Even if the “property” passes from generation to generation or sold out right to third parties, there is no end to the Federal Control or contract..(Reagen brought this up a time or two. Every agencie or dept DC births will out live us all….Didn’t we fight a Revolutionary War about that?????

  • Sparkie Arbuckle

    False cause fallacy.

    California pays for ND’s welfare.  I think that’s the reason.

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