The State Legislature has revised its revenue forecast projections in response to the lower oil prices, which threatens the number of rigs and workers. According to a Star Tribune article, North Dakota’s original 2015-2017 revenue estimate of $8.3 billion has been reduced to $4.2 billion – a nearly 50% reduction.
The Star Tribune article further explains that the original revenue projections were calculated on the basis of oil selling for between $72-$82 a barrel. The revised projections are based on $45-$65 per barrel prices.
The Legacy Fund and “Strategic investment and improvements fund” were among the largest reductions in the revised budget.
Today, oil prices dipped below $44 a barrel – a price not seen since March 2009. That compares to $93 a barrel last year.
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