For six years, Governor Kristi Noem has been a dynamic force in South Dakota, emphasizing her compelling message: South Dakota is open for business. During her recent budget address, Governor Noem reaffirmed her vision for bold and innovative strategies to attract new industries, create jobs, and stimulate the state’s economy. This message is exactly what South Dakotans are eager to hear. However, turning this vision into reality requires more than just invitations — it demands robust infrastructure and resources, beginning with energy.
In a state like South Dakota, where economic growth and energy resources are intertwined, prioritizing energy becomes essential. South Dakota’s commitment to attracting industries from diverse sectors—including manufacturing, value-added agriculture, and cybersecurity—relies heavily on affordable, reliable, and abundant energy. Without meeting these energy demands, businesses might consider looking elsewhere.
Kristi Noem
South Dakota stands as a significant player in the nation’s energy landscape, proudly being the fourth-largest producer of fuel ethanol. In 2022 alone, South Dakota contributed to about 9% of total U.S. fuel ethanol output. The state boasts 16 fuel ethanol plants with a production capacity of about 34 million barrels annually. This production supports a vibrant economy while reaffirming South Dakota’s dedication to renewable energy.
Notably, in 2023, an impressive 77% of South Dakota’s total electricity net generation came from renewable resources. The state ranks second only to Iowa in wind power, contributing 55% to its total electricity generation. This commitment to renewable energy reflects the state’s strategic alignment with global trends, promoting sustainable development.
South Dakota Government
The emphasis on energy is underpinned by Governor Noem’s approach to positioning South Dakota as a business-friendly environment. This strategy aligns with the state’s broader commitment to economic resilience and growth. However, it’s also essential to acknowledge the local political dynamics. Recently, a mayor faced criticism for chastising family-focused lawmakers, presenting an opportunity for introspective dialogue on how South Dakota can unify under shared goals.
The Dakota Scout journal offers critical perspectives on these political and economic issues, highlighting the division within South Dakota related to capital social battles. It underscores the importance of cohesive governance to drive forward the energy agenda that will support South Dakota’s industries and economy.
South Dakota’s crude oil production, albeit modest, has remained between 1 million and 2 million barrels per year over the past four decades. However, in 2023, it saw a drop to 929,000 barrels. Despite the decline, the state ranks highly in energy consumption, ninth in total energy per capita, reflecting its robust industrial activities. This statistic showcases the potential and necessity for improved energy infrastructure.
South Dakota Energy Infrastructure
Governor Noem, South Dakota’s first female governor and a prominent member of the Republican Party, has also been a controversial figure. Her response to the COVID-19 pandemic, marked by the absence of a statewide mask mandate, drew national attention. Recently, she endorsed Donald Trump for the 2024 Republican primary, signaling her influential role in national politics.
Reflective of her commitment to her constituents and values, Governor Noem’s autobiography, ‘Not My First Rodeo: Lessons from the Heartland,’ published in 2022, provides insights into her leadership ethos and the challenges faced. Her tenure is punctuated by lessons learned and a readiness to confront future challenges.
For South Dakota to harness its full economic potential, ensuring that the energy infrastructure meets the demands of incoming industries is crucial. This focus aligns with Governor Noem’s vision and the state’s commitment to being a business-friendly hub that prioritizes energy sustainability and growth.
As South Dakota navigates its future, leveraging its energy strengths and addressing its socio-political challenges will be key to continuing its upward trajectory in economic development and overall prosperity.