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Fri October 25, 2013
Mineral revenues stay strong amid production declines
Wyoming’s minerals revenue is expected to stay steady, even while natural gas and coal production fall. That’s according to the latest projections from the state’s Consensus Revenue Estimating Group – or CREG.
State geologist Tom Drean is a member of the group. He says the declining production will likely be offset by rising prices for natural gas, as well as increased oil production.
“Based on drilling activity and the way some of the new plays in the Powder River Basin are panning out, it looks like there’s room for optimism," Drean says.
Almost half of Wyoming’s revenue comes from minerals. Drean says the projections are based on futures prices and industry reports, among other things, but he cautions that there are factors that are tough to account for, like weather and the global geopolitical climate.
The revenue projections are updated twice a year.