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Tapping Into Growth – Oil, Gas Boom In North Dakota Has Transformed Travel Demand; Other States Also Hoping For Action

In 2008, the North Dakota Aeronautics Commission’s system plan predicted that the state’s airports combined would reach 1 million enplanements in 2030.

That level was reached in 2012, and growth has continued since.

The rapid growth of demand for air service in the state – due almost exclusively to the Bakken oil boom – is stretching the seams of airport infrastructure and is showing no signs of slowing.

“Since the oil boom came into play in North Dakota, we saw an immediate need of approximately $300 million [in airport infrastructure improvements and expansions] across the whole state just because of the incredible growth,” says Kyle Wanner, director of the North Dakota Aeronautics Commission, noting that pre-boom, the state’s airports typically shared about $30 million in funding from the Federal Aviation Administration and another $2 million or so from the state.

Neither the state nor the country has ever experienced such a sharp demand increase in such a short time. Although North Dakota’s overall enplanement numbers remain very small, the state has averaged a 12 percent annual increase in enplanements since 2009, and some airports have experienced triple-digit gains.

Overwhelming Growth

The Bakken oil formation, centered in the northwestern portion of North Dakota, brought a slew of oil companies and workers, along with related companies, to the once-rural area, prompting sharply increased demand for all types of services, including air travel.

Read the rest of this story in ARN’s September issue. If you do not yet receive ARN, subscribe now! Click here.

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