BISMARCK, N.D., Dec. 4 (UPI) -- North Dakota's governor rolled out his budget plans for the next year, saying the state's financial position was strong despite fears sparked by low oil prices.
North Dakota oil production in September, the last full month for which data are available, was 1.18 million barrels per day, an all-time high. Nearly all of the production came from the Bakken shale formation in the state.
Gov. Jack Dalrymple said he expects oil production to increase by as much as 15 percent through mid-2017, generating around $8 billion in production tax revenue for the state.
"Here in North Dakota, we can make meaningful investments in our people, our places and the many opportunities for continued progress," he said in a statement Wednesday.
The governor's office said the budget for the next two years is based on a domestic crude oil price in the mid $70 range next year and closer to $80 beyond that.
West Texas Intermediate, the U.S. crude oil price benchmark, has shed more than 30 percent of its value since June, trading below the $70 mark for the first week of December.
Analysts at consultant group IHS Energy said shale oil growth remains viable with WTI prices near the $70 mark, though some minor producers could be presented with challenges should prices drop much lower.
The governor's $15.7 billion two-year budget, which must be approved by state lawmakers, designated close to $4 billion to new infrastructure projects in the western Bakken shale region of the state.
