Even an 'optimistic' oil forecast shows Alaska running out of savings in 2021

Even under an “optimistic” forecast, the state of Alaska will run out of available savings by June next year, state legislators learned Wednesday.

Oil prices have plunged amid a worldwide pandemic that has vaporized demand for petroleum products. Crude oil is the second-largest basis of the state budget, behind only investment earnings.

On Wednesday, a barrel of Alaska North Slope Crude was worth $10.08, and a price of $79 per barrel is needed to balance the budget at current production levels.

In a meeting of the House Finance Committee, the Legislature’s leading budget official said the state revenue forecast for the next fiscal year is $815 million lower this spring than it was last fall.

Read more: https://www.adn.com/politics/alaska-legislature/2020/04/22/optimistic-oil-forecast-calls-for-alaska-to-run-out-of-savings-in-june-2021/
(Anchorage Daily News)