The oil boom raging in North Dakota is unlikely to come to South Dakota, according to a study this week from the office of Gov. Dennis Daugaard (R).
Even under the study’s optimistic scenario, which assumes extensive additional exploration, South Dakota should expect annual production to rise to about 3.2 million barrels over the next 10 years, up from current production of 1.6 million barrels per year.
In comparison, North Dakota produced about 152 million barrels of oil last year.
Lawmakers say South Dakota’s best option for cashing in on the boom is to provide materials and services to North Dakota’s energy industry.
State officials have long wondered whether North Dakota’s oil boom might extend to the south, but the Wednesday study is the first to offer specific predictions.
South Dakota has published online information about its formations in an effort to encourage companies to explore in the state, but officials say drillers are unlikely to leave the North Dakota boom for the uncertain South Dakota landscape.