I normally don't pay much attention to North Dakota legislative activity, but a four-hour flight from Grapevine, TX, to Seattle, WA, gave me an opportunity to spend some time doing just that.
I was surprised how interesting this all was.
Some data points from Geoff Simon's top ND energy news for the week:
- ND legislative appropriations committee adopted an interim revenue forecast for the 2021 - 2023 biennium;
- income forecast:
- $40 / bbl through the biennium
- production to decline to 1.1 million bpd (2021-2022)
- production to decline to 1.0 million bopd (2022-2023)
- this would add just under $3 billion in oil tax collections over the coming biennium;
- compares to $3.5 billion expected in the current biennium (2019 - 2021)
- expenditures:
- $434 million to western North Dakota (formulaic)
- that would be down about 16% from the $518 million in the current biennium
- Legacy Fund: would realize $780 million in deposits
- from that $780 million:
- Common Schools Trust Fund: $127 million
- Foundation Aid Stabilization Fund: $127 million
- Three Affiliated Tribes: $373 million
- other income:
- sales tax revenue: $1.74 billion
- personal income tax: $816 million
- corporate income tax: $260 million
- motor vehicle excise tax: $260 million
Director's comments with release of Director's Cut:
- monthly crude oil production held steady due in part of 74 new well completions in November
- look at this: in December, 44 wells were completed, most of which were credited to the state's CARES Act frack incentive -- Helms said the number of completed wells in December would have likely dropped to zero without that incentive
- unlikely to see an increase in drilling activity unless prices stabilize above $55/bbl
- the industry continues to meet the natural gas capture target, 93%
- slightly slower on the reservation due to difficulty obtaining right-of-way for construction of gating pipelines (flaring will become less of a problem on federal land if the DAPL is shut down)
- mentioned the completion of Outrigger Energ's Sanderson NGL processing plant 15 miles west of Williston; capacity: 250 million cubic feet of gas per day (42,000 BOEPD?)
DOT:
- proposed budget: $1.8 billion for new biennium
- about $400 million more than current biennium
- that $400 increase possible if bonding (Legacy Fund) proposal accepted
- widening US Highway 85 from Watford City to I-94
- 2021 - 2023 budget includes $50 million to widen US Highway 85 from Watford City south to Long X Bridge
- requires US Congressional support
- phase 2: US Highway 85 from Long X Bridge to state highway 200
- phase 3: US Highway 85 from state highway 200 to I-94
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