Tioga Emerges as North Dakota’s Thriving Oil Hub Amid Boom

On this date in 1951, Tioga, North Dakota, along with the nearby town of Ray, quickly adapted to an oil boom by expanding housing, services, and job opportunities for incoming drilling crews. With a population of approximately 456, Tioga has positioned itself as a critical hub for oil exploration in the region.

While a sign at the intersection of Highways 2 and 40 boasts Tioga as the “oil capital of North Dakota,” many residents acknowledge that their resources are limited. “We don’t expect the big oil companies to set up their main state headquarters here, but we hope Tioga will be an advance base,” shared a local resident. This sentiment reflects the community’s aspiration to become a focal point for oil-related activities.

Drilling operations are currently underway at several sites, including the Iverson wells located three miles south of Tioga. The Math Iverson No. 1 and Dillard No. 1 wells are actively being drilled, while the Bakken well, situated three miles north, is seeing deeper drilling by officials from Amerada Petroleum Corporation. The discovery of oil at these sites has heightened the need for housing and storage for the influx of oil workers and supplies.

Tioga’s strategic location makes it an ideal “jumping-off place” for oil field operations. Since oil was first discovered on the Clarence Iverson farm in April 1951, the town has been busy adapting to the demands of the oil industry. Local businesses have expanded to accommodate the growing workforce, with restaurants increasing staff to serve the needs of oil crews. At Helga’s Cafe, operated by Helga Lauritsen, the daughter of the state’s first oil royalties recipient, Shirley Iverson, assists in serving meals.

As demand for services rises, vacant buildings in Tioga are being repurposed for oil field activities. An old garage on Main Street now serves as headquarters for the Oil Field Service Company, while a former lumber yard has become home to J. J. Stanton Transportation Company, specializing in oil field trucking. The old county hospital is now occupied by independent oil welders, further illustrating the town’s transformation.

Despite the growth, Tioga faces challenges in housing availability. Many oil field workers have been residing in Ray, approximately 13 miles to the west. To address this shortage, Clarence Gilbride, Tioga’s mayor, is planning to develop properties east of the town, potentially constructing three or four rental homes. The village is also working to resolve its water and sewer issues, with a $139,000 water program aimed for completion this fall.

The modernization efforts began two years ago but faced delays due to legal challenges. Recently, work commenced on a new 100-foot water tower capable of holding a 50,000-gallon tank, with the engineering firm Dakota Engineering Company overseeing the project.

Although Tioga remains predominantly rural, oil production has shifted the focus of the community. Four grain elevators dominate the skyline, but the land beneath is increasingly leased to oil companies. Most property owners in Tioga have leased their land under non-production agreements with Amerada, receiving $50 for ten-year residential leases and $10 for business lots. Should drilling commence, residents could earn royalties from oil production, offering a financial incentive for the community.

In Ray, the neighboring town, local mayor Evelyn Knudson notes that many oil workers are finding accommodation within its 750 residents. The burgeoning oil industry has created opportunities not just for Tioga but also for surrounding communities, with laborers recruited from Ray, Tioga, and adjacent areas.

As Tioga continues to evolve in response to the oil boom, residents remain hopeful about the economic prospects and the potential for long-term growth. The ongoing developments in this small town signify a broader trend in North Dakota’s energy landscape, with many eyes now focused on the future of oil exploration in the region.