Stressed state budgets… Brookings – Commodity Research Group

April 15, 2016 by Jim Colburn Leave a Comment

The Brookings Institute posted a blog describing the volatility in oil producing states: http://www.brookings.edu/blogs/the-avenue/posts/2016/04/14-state-budgets-fracking-crash-saha-muro?utm_campaign=Brookings+Brief&utm_source=hs_email&utm_medium=email&utm_content=28480309&_hsenc=p2ANqtz-_McttEZqjAgCwDOQYth0vmfLhsyLUe7lcHpc4LeWBG6PKTJX7c

It’s an ugly picture:

Here is what North Dakota is doing:

“North Dakota’s total severance (extraction tax) revenue fell from more than $3.5 billion in 2014 to $2 billion in 2015, despite oil production remaining largely flat throughout 2015. Gov. Jack Dalrymple has now ordered state agencies to slash their budgets by 4 percent to close a $1 billion budget shortfall. The state has drawn down its entire $331.7 million surplus, and also plans to tap nearly $500 million from its budget stabilization fund.”

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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