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Falling natural gas prices hit states' pocketbooks

USA Today -- Energy-producing states are bracing for lower tax revenue from the plummeting price of natural gas, which is just above half of what some states forecast when they put together budgets for 2013 and beyond.

Production of natural gas is up nationally largely because of the spread of hydraulic fracturing, a drilling practice that allows tapping of deposits formerly out of reach. A warm winter cut demand, driving the price below $2 per thousand cubic feet in April.

That reduces natural gas heating costs for millions of Americans — the Energy Information Administration estimates they will be 25% lower this year than in 2008 — but crimps states dependent on natural gas taxes. Some are preparing for lower prices for 2013 and 2014 budget years.

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Submitted May 02, 2012 By: BurntOrange

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Eliano Champion Author Baltimore Posts:1,412 Points:388,100 Joined:Jun 2011	Message Posted: May 3, 2012 1:24:47 PM Ignore Eliano Report Abuse no surprise
dr047 Champion Author Cleveland Posts:2,602 Points:519,395 Joined:Aug 2010	Message Posted: May 2, 2012 1:42:43 PM Ignore dr047 Report Abuse Yea But ... All the cities are paying much less to heat government buildings including schools.
nels1jac Veteran Author Minnesota Posts:493 Points:543,280 Joined:May 2011	Message Posted: May 2, 2012 1:22:06 PM Ignore nels1jac Report Abuse The price has risen lately and will keep going up
bar1035 Champion Author Charlotte Posts:9,172 Points:1,300,170 Joined:Aug 2006	Message Posted: May 2, 2012 10:32:00 AM Ignore bar1035 Report Abuse sales tax income is based on price... the higher the price the higher the tax, the lower the price the lower the tax...
fracknsave Champion Author Grand Rapids Posts:1,666 Points:58,000 Joined:Mar 2012	Message Posted: May 2, 2012 9:45:11 AM Ignore fracknsave Report Abuse Instead of bracing for lower revenue, why don't they identify those 'non-essentials' and give them the opportunity to produce GNP in the private sector?
Rockyguitar Champion Author Tampa Posts:2,572 Points:1,204,520 Joined:Sep 2008	Message Posted: May 2, 2012 9:25:07 AM Ignore Rockyguitar Report Abuse They can always find bad news from good news. Lower prices...how terrible.
Gas_Eyes Champion Author Dallas Posts:2,687 Points:646,810 Joined:Mar 2011	Message Posted: May 2, 2012 9:06:56 AM Ignore Gas_Eyes Report Abuse States should help encourage the use of natural gas in transportation to increase the demand. Motorists will save a lot of money.
GingoutMD Champion Author Maryland Posts:3,495 Points:713,305 Joined:Jan 2010	Message Posted: May 2, 2012 8:53:47 AM Ignore GingoutMD Report Abuse Backlash of the "drill baby drill" mantra.
Joeski1 Champion Author New Jersey Posts:10,012 Points:1,743,785 Joined:Dec 2004	Message Posted: May 2, 2012 8:51:17 AM Ignore Joeski1 Report Abuse The states could always start taxing fossil fuel waste by product. Ie. So much per gallon of fracking waste fluid (it was water, but it aint water anymore!) so much for each metric ton of nuke waste, so much for every ton of coal ash, so much for every gallon of spilled oil, etc, etc [Edited by: Joeski1 at 5/2/2012 8:55:35 AM EST]
Luckylindy Champion Author Milwaukee Posts:4,524 Points:1,129,020 Joined:May 2008	Message Posted: May 2, 2012 8:50:41 AM Ignore Luckylindy Report Abuse And still my heating bill hasn't budged.
RochBear Champion Author Minnesota Posts:10,472 Points:1,743,665 Joined:May 2006	Message Posted: May 2, 2012 8:37:30 AM Ignore RochBear Report Abuse But what about all the expense of heating buildings with Nat gas. They are saving a ton of money there.
MidNJ Champion Author New Jersey Posts:7,559 Points:1,173,100 Joined:Sep 2009	Message Posted: May 2, 2012 8:25:10 AM Ignore MidNJ Report Abuse Since I heated my home all winter with Natural Gas, it hit my pocketbook too (by keeping more money in it).
cmptrmush Champion Author Detroit Posts:3,625 Points:740,395 Joined:Feb 2011	Message Posted: May 2, 2012 8:23:55 AM Ignore cmptrmush Report Abuse Excellent, yet another way for government to not make money and go further into debt.