We all know Montana is nicknamed the “Treasure State.” For decades, many Montanans have worked the land, developed our abundant resources, and showcased our natural beauty to visitors from around the world. We are truly blessed to live in a place like Montana.
Our vast natural wealth is one reason Montana’s economy has not been hit as hard as other states during this economic downturn. Oil and gas revenues have kept us afloat, as have good prices in agriculture and tourism dollars. As we look to the future of our state’s economy and the financial well-being of our government institutions, there is no doubt that natural resources must remain in the mix of a diverse Montana economy.
So much more can and should be done to responsibly develop our rich natural resources in order to keep taxes on business and individuals low, fund K-12 schools and our university system, and put Montanans to work in good-paying jobs.
We know what things can be like if we get fully behind these initiatives. North Dakota, our neighbor to the east, has seen state revenues skyrocket as a result of the oil and gas boom on their side of the border. In a recent legislative session, they made massive investments in infrastructure, increased school funding, and provided sizable tax relief for their citizens. We can see all of that in Montana. With decreases in workers’ compensation rates and more competitive business equipment tax rates on the horizon, Montana is poised to see increases in its own oil production.
As Montana grows its production, it is also important to encourage more development of oil in friendly trading partners, like Canada. The megaload trucks, which are trying to make their way through our state, are designed to enhance oil development north of the border. Those trucks were unfortunately halted by injunctions from environmentalists who are opposed to any oil production. If we want to be less reliant on oil from Saudi Arabia, Venezuela, or other unstable countries, we need to boost production of those resources here in North America.
Another project that needs to get off the ground is the Keystone XL pipeline, which will take oil from Canadian oil sands and move them south to refineries in Gulf Coast states. In addition, on-ramps for this pipeline will be built in eastern Montana, thereby providing a newer, more efficient means for getting Montana oil to market. That’s a win-win situation for Montana. The U.S. State Department is currently reviewing the plans to build this pipeline, which will create thousands of jobs and provide tens of millions of dollars in new tax revenue for our state.
Another huge economic development project in southeastern Montana should begin in the next few years. The Otter Creek coal tracts can provide hundreds of jobs and billions in state and local government revenues if it is allowed to get off the ground. Wyoming, our neighbor to the south, has 10 times the coal production of Montana despite having less of this resource than we do. We know it can be done in a productive and low-impact manner with Cloud Peak Energy’s good track record at the Spring Creek mine near Decker. Much work remains to be done for Otter Creek as permits are obtained and frivolous court challenges are dismissed, but we must look for these opportunities to boost development in Montana.
These big projects are also crucial to the health of our small business communities. Main Street is often dependent on larger anchor industries that put dollars in the pockets of communities to keep small businesses thriving. Whether you’re a restaurant, grocery store, hotel, or hardware store, you know Montana’s economy can use development as a way to see more business come in your doors.
We have the answers to our nation’s energy needs. We can have good-paying jobs that will put people to work. We can see big revenues are within reach to fund schools and our state and local governments. We just need state and national leadership that will help make those possibilities a reality.
Tami Christensen is the owner of Tri-County Implement in Sidney. She is the incoming chair of the Montana Chamber of Commerce Board of Directors.