Tuesday, February 7, 2012

Mead says he's concerned gas prices could go lower

Gov. Matt Mead says he and state lawmakers are watching slack natural gas prices with concern as they consider how to craft the state budget for the coming 2-year funding cycle. Mead in December proposed a $3.4 billion state funds budget based on state revenue projections that called for natural gas to average $4 per thousand cubic feet this year. Mead was forced to cut his spending recommendations by over $100 million after analysts cut their projected average gas price to $3.25 per thousand cubic feet in January. Gas is currently trading at around $2.70 per thousand cubic feet at the Opal Hub in western Wyoming. Mead noted that the Legislature's Joint Appropriations Committee recently recommended setting aside $150 million from state reserves in case gas revenues fall below projections.

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