The state Department of Revenue predicts an increase in oil prices next year will provide Alaska with hundreds of millions of dollars in additional revenue.
Alaska’s Energy Desk reports that the department’s tax division released its semi-annual report on the state’s fiscal climate this week. Tax officials expect oil prices to rise over the next few years, but the state will still have to find other ways to close its multibillion-dollar budget deficit.
The revenue department forecasts average oil prices will jump from $46.81 per barrel this fiscal year to $54 per barrel next year. Prices aren’t forecast to exceed $88 within the next ten years.
Officials expect a drop in North Slope oil production by about 35,000 barrels between fiscal 2017 and fiscal 2018.
Information from: KTOO-FM, http://www.ktoo.org
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