Then come Decemeber 31st, you make up the shortage for that month if your production was low (as December is usually a low production month) by paying for the difference or if you have a credit, you get paid out at 50 cents on the dollar for that year ending in December. 

With low oil over the last few years, exploration has significantly decreased worldwide and there are predictions of an oil shortage by as soon as 2020 http://business.financialpost.com/commodities/ener...Anchorage is slightly less dependent on oil as the state is with strong, rapidly growing, employment in the medical field and a large army and air force base.

I believe that development is in Newhall.    21K homes is very welcome to an area that has a shortage of inventory. 

There's no shortage of folks throwing a few thousand at it and quitting. 

Also if you are thinking about rents, rents have been going up here in Colorado and we still have a housing shortage.

But a shortage of properties available for sale remains a hurdle and house prices have risen faster than wages, sidelining some first-time buyers.Last month, the inventory of new homes on the market fell 0.4 percent to 243,000.

I am in the Bloomington/Normal market and there is definitely no shortage of 2-4 units.

To combat this "shortage" is there going to be an era of massive new home builds?

Rates will put downward pressure on home prices but there's still a major housing shortage and people have locked in, low interest debt (mostly) so there's no need for most to sell. 

I gave up my crystal ball a long time ago, but either way there is still a very large shortage of inventory and properties are still selling :)