Does Shale Energy Development Mean More Crime? The Case of the Bakken Oil Boom

Abstract

AbstractThe rise and fall of shale oil production in recent years have led to tremendous economic growth and challenges to shale communities in the U.S. In this study, we attempt to address the inconsistent results in previous studies and shed light on the relationship between rural crimes and shale oil development at the Bakken using county‐level data for Montana and North Dakota from 2000 through 2014. Our results indicated statistically significant evidence of increased aggravated assaults, burglaries, larcenies, and motor vehicle thefts in shale‐oil producing counties during the boom. However, the regression results suggest that the rise in certain violent crime, such as murder, rape, and robbery, is not statistically attributable to the shale oil boom or oil activity, but to increased population in the two states. The crime effect of the boom also grew larger especially after 2008. The results point to some evidence of social disruption in rural communities undergoing rapid shale oil development. More importantly, the Bakken's crime experience also suggests a number of critical needs for shale energy regions nationwide.