US oil-producing states battered as energy prices slide

Dallas

IN Kern County, California, one of United States' biggest oil producers, tumbling energy prices have wiped more than US$8 billion from its property-tax base, forcing officials to tap into reserves and cut every department's budget. It's only getting worse.

The county of 875,000 in the arid Central Valley north of Los Angeles may face another blow in January, when it reassesses the oil-rich fields that line the landscape. The previous year's tax bills were based on crude selling for US$54 a barrel. It's now at about US$37.