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North Dakota is a substantial crude oil-producing State with an output typically equal to roughly 2% of total annual U.S. production. The State is also an entrance point for Canadian crude oil transported via pipeline to U.S. Midwest refining markets. A small petroleum refinery near Bismarck refines crude oil extracted from the Williston Basin, which covers eastern Montana and the western Dakotas, as well as a small amount of Canadian crude. The refinery produces transportation fuels primarily for the northern Great Plains States and the Twin Cities area. A small new refinery has been proposed on the Fort Berthold Indian reservation in western North Dakota. If constructed, it would be the first new crude oil refinery in the United States in decades.  

North Dakota is a substantial crude oil-producing State with an output typically equal to roughly 2% of total annual U.S. production. The State is also an entrance point for Canadian crude oil transported via pipeline to U.S. Midwest refining markets. A small petroleum refinery near Bismarck refines crude oil extracted from the Williston Basin, which covers eastern Montana and the western Dakotas, as well as a small amount of Canadian crude. The refinery produces transportation fuels primarily for the northern Great Plains States and the Twin Cities area. A small new refinery has been proposed on the Fort Berthold Indian reservation in western North Dakota. If constructed, it would be the first new crude oil refinery in the United States in decades.  

[[File:Nd-oil-drill.jpg|thumb|390px|Drilling for oil in Williston Basin, 1963]]

[[File:Nd-oil-drill.jpg|thumb|390px|Drilling for oil in 1963 in the Williston Basin, near the western border]]

Ethanol is produced at four ethanol plants in North Dakota, and a fifth is under construction, giving the State considerable ethanol production capacity. North Dakota is a moderate consumer of ethanol in blended motor gasoline, although it is one of the few states that allow the statewide use of conventional motor gasoline. (Most States require the use of specific gasoline blends in non-attainment areas due to air-quality considerations.) Ethanol is fast losing popularity because it is expensive and by taking crops out of the food chain it raises food prices.

Ethanol is produced at four ethanol plants in North Dakota, and a fifth is under construction, giving the State considerable ethanol production capacity. North Dakota is a moderate consumer of ethanol in blended motor gasoline, although it is one of the few states that allow the statewide use of conventional motor gasoline. (Most States require the use of specific gasoline blends in non-attainment areas due to air-quality considerations.) Ethanol is fast losing popularity because it is expensive and by taking crops out of the food chain it raises food prices.