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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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REPLIES (newest first) Post a Reply
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Eliano
Champion Author Baltimore

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Message Posted: May 3, 2012 1:24:47 PM

no surprise
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dr047
Champion Author Cleveland

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Message Posted: May 2, 2012 1:42:43 PM


Yea But ... All the cities are paying much less to heat government buildings including schools.
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nels1jac
Veteran Author Minnesota

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Message Posted: May 2, 2012 1:22:06 PM

The price has risen lately and will keep going up
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bar1035
Champion Author Charlotte

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Message Posted: May 2, 2012 10:32:00 AM

sales tax income is based on price... the higher the price the higher the tax, the lower the price the lower the tax...
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fracknsave
Champion Author Grand Rapids

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Message Posted: May 2, 2012 9:45:11 AM

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?
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Rockyguitar
Champion Author Tampa

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Message Posted: May 2, 2012 9:25:07 AM

They can always find bad news from good news. Lower prices...how terrible.
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Gas_Eyes
Champion Author Dallas

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Message Posted: May 2, 2012 9:06:56 AM

States should help encourage the use of natural gas in transportation to increase the demand. Motorists will save a lot of money.
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GingoutMD
Champion Author Maryland

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Message Posted: May 2, 2012 8:53:47 AM

Backlash of the "drill baby drill" mantra.
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Joeski1
Champion Author New Jersey

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Message Posted: May 2, 2012 8:51:17 AM

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]
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Luckylindy
Champion Author Milwaukee

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Message Posted: May 2, 2012 8:50:41 AM

And still my heating bill hasn't budged.
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RochBear
Champion Author Minnesota

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Message Posted: May 2, 2012 8:37:30 AM

But what about all the expense of heating buildings with Nat gas. They are saving a ton of money there.
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MidNJ
Champion Author New Jersey

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Message Posted: May 2, 2012 8:25:10 AM

Since I heated my home all winter with Natural Gas, it hit my pocketbook too (by keeping more money in it).
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cmptrmush
Champion Author Detroit

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Message Posted: May 2, 2012 8:23:55 AM

Excellent, yet another way for government to not make money and go further into debt.
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