Report Details Strategies for Energy States to Weather Booms and Busts

Some states relied more on the most recent energy boom than others, and some prepared more for the inevitable bust. A report by the Brookings Institution recommends actions for energy states to build resilience in the face of boom and bust cycles.

1 minute read

May 4, 2016, 6:00 AM PDT

By James Brasuell @CasualBrasuell


Oil Rigs

ded pixto / Shutterstock

An article by Mike Maciag details strategies energy states could use to weather the boon and bust cycles of their economies. After noting the recent financial troubles of Alaska, North Dakota, and Louisiana, Maciag shares news of a report recently released by the Brookings Institution, which calls on states "to rethink how they’re collecting and spending severances taxes derived from natural resources." In fact, "States can do a better job, the report authors say, of channeling oil revenues to stable trust funds that better weather the boom-and-bust cycle."

Specifically, the report "recommends that a portion of states’ annual severance tax revenues be diverted to permanent trust funds"—steps eight states have taken so far. Maciag details the experience of Pennsylvania and Ohio, "two oil-rich states that levy little or no severance taxes" and have had trouble navigating the politics of implementing new taxes.

As for states that have already established trust funds, the report "further [outlines] a series of recommendations for states that have already established trust funds," including "a solid governance framework, clear investment strategy, transparency standards and well-defined fiscal rules…"

Wednesday, April 20, 2016 in Governing

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

October 28, 2026 - Zachary Whalen

A car drives through a puddle, making a large splash. Rain pours down.

California plans to bury El Niño’s downpour

If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.

October 28, 2026 - Grist

A pencil rendering of Foundry Park, which shows skyscrapers and public green spaces.

Chicago breaks ground on $3 billion megadevelopment

The new neighborhood, titled Foundry Park, will one day host 3,700 residences.

October 23, 2026 - Chicago Sun Times

A swamp in South Carolina with tall pale trees and Spanish moss in the water.

Satanic place names

From streams and lakes to valleys and canyons, I mapped more than 1,000 places named after the Devil.

October 31 - The Daily Yonder

A rendering of a high speed rain station in California, with wide platforms and a sleep train with yellow highlights.

California High-Speed Rail Authority CEO resigns after $600,000 scandal

Under Ian Choudri, the authority used taxpayer dollars to fund first class flights and trips to nightclubs.

October 30 - Cal Matters

 A bridge stretches across the Missouri River at Chamberlain, South Dakota.

Want to study the Missouri River? Soon, you may need unanimous approval from 10 states

Legislation would require 10 governors’ permission to study or build projects moving water outside the basin.

October 30 - South Dakota Searchlight