ND Oil Tax Gusher ContinuesBISMARCK, N.D. (AP) — Oil prices and North Dakota's oil production are running well ahead of what state budget planners expected.
By: Associated Press,
BISMARCK, N.D. (AP) — Oil prices and North Dakota's oil production are running well ahead of what state budget planners expected.
When the Legislature wrote North Dakota's budget last year, lawmakers estimated that oil prices would run between $72 and $75 a barrel over two years. They expected monthly production of about 400,000 barrels a day.
State budget director Pam Sharp says oil prices are above $90 a barrel, and they're expected to go above $100 a barrel next year. Production is more than 500,000 barrels a day.
Thirty percent of the oil tax money goes into a trust fund. The fund has collected about $220 million through February. Other oil money will go into the state's general treasury, along with special funds for property tax reduction, disasters and building projects.
Copyright 2012 The Associated Press.