Richland county: an energy roller coster.

• Author: Polzin, Paul E.
• Position: Statistical data

Until about 10 years ago, Richland County has enjoyed a relatively stable and prosperous economy based on agriculture, food processing, and a utility company. Then technological advances enabled the extraction of crude oil, which was previously uneconomic. It has been dubbed the "unconventional energy revolution."

Oil drillings rigs sprouted like wild flowers, the traffic was astonishing, and there were few vacancies in the few motels. The plummeting of worldwide crude oil prices since mid-2014 has introduced some uncertainties.

The oil boom has led to some significant changes in certain sectors of the local economy. Specifically, employment and average wages have risen much faster than expected in local industries not usually associated with oil drilling and extraction. Employment in professional services, which includes highly educated workers such as accountants and architects, rose 130 percent in Richland County between 2003 and 2013 as compared to only 21 percent statewide. Similarly, wages per worker in Richland County rose 169 percent as compared to 87 percent in Montana during the same period.

The accommodation industry is a traditional path for young and inexperienced persons to enter the workforce. The same trends are present. Employment in Richland County increased much faster than statewide and the increase in average wages per worker far exceeded the Montana figure.

Irrigated sugar beet production and processing, cattle, and other crops have long been a mainstay of the Richland County economy. Recent sugar prices are down somewhat from the record levels of a few years ago, but continued improvements in technology and other factors in agriculture should help to buffer energy volatility. Applying...