Crude prices bolster state revenue forecast.

• Author: Pilkington, Steve
• Position: Oil & Gas - Brief Article

Department of Revenue Commissioner Bill Corbus released the fall revenue forecast for the State of Alaska, which shows a record all-time high price for Alaska North Slope crude oil. North Slope oil has averaged $43.16 per barrel through November.

The department's fall revenue forecast projects high oil prices will persist through Fiscal Year 2006, with an average price of $43.61 in FY 2005, and $34.50 in FY 2006. This forecast projects a fiscal year-end surplus in FY 2005 of $653 million based on last year's authorized operating budget of $2.33 billion, Corbus said. While the unanticipated windfall is good news for the state, the volatility in the price of oil underscores the need for action by the Legislature on a fiscal plan, Corbus said.

"We can use these high prices as...