The layoffs are expected to be permanent “until the crisis is over and the industry recovers.”
Economists at the state’s Department of Revenue were working to identify what drove the price down and what they could expect going forward.
The price of U.S. and global benchmarks are both below $40 per barrel. The COVID-19 pandemic is driving some of the recent decline, but prices were low even before the outbreak.
“If oil averages $85, the deficit for the state is about $3 billion,” says Kevin Jardell, the City and Borough of Juneau’s lobbyist for state issues.