Cecile Wehrman, Williston Economic Development

Taxable sales in Williston increased nearly 41 percent in the first quarter of 2008, capping a full two years of double-digit increases.

“Wow!” said Williston Mayor Ward Koeser. "That's unprecedented."

As City Commissioner Brad Bekkedahl points out, Williston is becoming a powerhouse in the state’s economy.

"Williston is the 9th largest city in North Dakota, but is the 5th largest city in taxable sales," said Bekkedahl, behind only Fargo, Bismarck, Grand Forks and Minot. Economic Development Director Tom Rolfstad believes Williston could move up another notch.

“We are starting to move in on Minot for the number four position. This is an amazing time!” he said.

Williston’s taxable sales for the period were $119 million, compared to Minot’s $158 million.

Dickinson, much closer in size to Williston, reported sales of $66 million.

“Dickinson, when it had its Lodgepole play, probably did exactly what Williston is doing now,” said Kathryn Strombeck, research analyst for the state tax department.

But right now, “You do see that the big winners tend to be around that Bakken area,” she said.

Mountrail County, the current hot spot in the play, posted a 91.5 percent increase, with the city of Stanley claiming a 93 percent increase. New Town was up 76 percent.

Burke County jumped a whopping 166 percent in taxable sales and purchases, from $1.5 million in the first quarter of 2007 to $4.1 million in 2008. McKenzie County saw an increase of 50 percent. Divide County saw a more modest increase of 18 percent.

In Burke and McKenzie, taxable purchases made the big difference, but in Williston, they had a smaller impact. Taxable purchases represent items businesses purchase for their own use.

But those types of purchases made up a much smaller percentage of Williston’s pie.

And, Strombeck noted, it would be a mistake to attribute Williston’s good fortune solely to the oil industry

“Williston is doing really well in other sectors,” she said.

Retail trade was up 15 percent.

“That’s phenomenal retail growth,” Strombeck said.

As well, wholesale trade boasted a nice increase -- up 59 percent. Construction saw a similar increase, up 58 percent.

These increases, Strombeck said, are likely oil related, but they aren’t directly attributable to oil exploration.

Koeser described the increase as a positive one, beyond the cyclical nature of the energy industry.

''It just says our economy right now is very, very strong," Koeser said. ''It's good for Williston. It's good for the whole state.”

Percentage wise, mining and oil extraction was almost level compared to last year, increasing from $9.2 to $9.5 million - an increase of less than 3 percent. Strombeck pointed out that taxable sales and purchases made by oil companies headquartered in Williston are reported in Williston, regardless of where the rigs or operations occur in the state.

Clearly, the spin-offs from that activity are great.

''We've been growing at 20 and 30 percent and thought that was pretty good. For a city of our size to grow by 40 percent from one year to the next is awesome. The economy is even stronger than we thought it was. That should go well for our future,'' Koeser said.

Coming as it does at a time when the rest of the country is reporting dismal numbers, Rolfstad said, he’s fielded several regional and national press inquiries in recent days, all honing in on the prosperity created by the oil patch.

“We have so many states just suffering,” said Strombeck. “Here we have western North Dakota doing exceptionally well.”

Even towns that have no impact from oil or the strong Canadian dollar are flying high.

“Jamestown is up 20 percent. Go figure!” Strombeck exclaimed. “We have amazing growth throughout the state.”

In a press release issued Wednesday, North Dakota Tax Commissioner Cory Fong cautioned the second quarter of 2008 could see some softening.

“There are some early signs that increased fuel costs could affect our tourism industry as vacationers may tend to stay closer to home,” he said.

The impact on agricultural producers, paying higher fuel and fertilizer prices, may also begin to show up.

But for now, state and local officials are basking in the glow of a 12.9 percent increase in taxable sales and purchases statewide.

“This report marks the 20th consecutive quarter of growth for North Dakota’s economy going back to the middle of 2003,” said Fong. “Even with high gas prices, concerns of a credit crunch, and national reports of a slumping housing market, North Dakota’s consumer spending remained strong.”

LeAnn Eckroth, Senior Staff Writer for the Williston Herald, contributed to this story.