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Published on : Dec 18, 2014

Due to excessive petroleum on the global market, gas prices are heavily tumbling in several places of the world. This aspect could prove effective and great for consumers in most parts of the world, but it is not so for the Utah. The petroleum industry in Utah has a tough time with the state budget. 

In Utah, the average gas prices have declined to around $2.64 a gallon. This has in turn affected its cost of living which fell to 0.2 percent last month. However, Utah ranks 9th in the overall energy production. So, the low prices typically dig into the high revenues of state government and energy companies. 

The Director of the Utah Energy Development Office - Laura Nelson says there is going to be some kind of decline in production though. Laura said they have not completely evaluated the effects of the impact, but it would be really naïve to consider that there would not be any impact to the revenues. With the trends in the energy industry, it is certain to see certain impacts in terms of revenue and growth. The prices have declined way below $60 a barrel, which is half of what they were last summer. 

These prices are entailed with the thinking of state leaders regarding looking for control of federal lands in Utah. In case, if energy prices soar or stay high in the coming years, it would be good to take over, says a report. 
In the previous year, the mineral lease revenue and other oil and gas royalties from public lands had exceeded $500 million.