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The recent free-fall of crude oil prices has affected markets across the globe. Energy companies have responded by scaling back investments as their available capital shrinks. In British Columbia, delays are hampering the Pacific Northwest LNG project. Likewise, in Texas, a liquefaction project has been suspended off its coast by Excelerate Energy. Yet, meanwhile, Alaska ismoving forward on an ambitious infrastructure project to develop and export its North Slope gas reserves.

Alaska’s resources are unique. The state receives approximately ninety percent of its revenue from taxes on oil production, leaving the budget vulnerable to price fluxes. Amid tumbling oil prices, Alaska could now face a projected deficit of almost $3.5 billion, opposed to a projected $1 billion deficit last year. State leaders have responded by tightening the state’s fiscal belt, with the newly elected Governor Bill Walker announcing projected cuts to six ongoing state projects.

Read the full article at Forbes.