4a. Factors Affecting the Lignite Industry
Several factors affected lignite production from 1920 to 1951. They include the Great Depression, the Garrison Dam and drilling for oil and natural gas.
North Dakota Lignite Production
The sections highlighted in purple show times in North Dakota’s history where lignite production dropped.
The Great Depression
The Great Depression was a time of extreme economic downturn that started in 1929 and lasted until the late 1930s. That meant lowered lignite production due to a reduced need.
The Garrison Dam
Hydroelectric power became readily available to power co-ops and municipal electric systems when the Garrison Dam opened. This reduced the need for lignite.
Natural Gas
Drilling for oil found natural gas, which can also generate heat and electricity. Oil rigs lessened the dependence on lignite.