States Hardest Hit by Oil Prices

The impact of the oil price slump since 2014 is being felt hardest in energy-dependent states including Alaska, Oklahoma, Louisiana, and North Dakota. Even though the oil price now hovers around $50 per barrel the plunge from over $100 per barrel is crippling state budgets. Budgets for 2017 are in short fall. As risk are public schools, health care, infrastructure and universities. Budgets in the energy-dependent states have already been cut by billions, and programs are being cut or drastically reduced. Wyoming is also hard hit. Louisiana Governor John Bel Edwards said, "There is every possibility we are going to have to take out a loan to pay regular, ordinary bills." The job loss in these states is enormous. Oklahoma reposted a 17-year low in income tax collection, and royalty payments are down by over 50%. Income levels in North Dakota have receded to pre-2010 levels. Job loss has spilled over into the manufacturing sector particularly in Oklahoma and Texas.