Contact Us

Charles Perry: Falling Oil Prices Could Hurt State Budget

Charles Perry
Photo: Jody Smyers, KFYO

State Senator Charles Perry visited with Lubbock’s First News’ Tom Collins and Laura Mac Tuesday morning to talk about how falling oil prices could affect the state budget and Texas’s health care challenges.

Perry told Tom and Laura that the current drop in oil prices, while great for consumers, could have a negative impact on the state budget.

Once prices fall below $70 per barrel, Texas may need to rework its budget. Every $5 change in the price of oil could have a $200 million effect on the state budget, Perry said.

Sen. Perry estimated that $75 per barrel is the break-even price considering new fracking technology. In his opinion, $85 per barrel is the “sweet spot” where gas prices are reasonable and the oil companies are still making money .

The senator also discussed the potential impact the Keystone Pipeline would have on the state. He believes that unless refinery capacity increases, an increase in crude oil supply would not have a positive impact on gas supply and prices.

Sen. Perry brought up the possibility of a companion pipeline that would be used to carry fresh water from Canada and be used to recharge aquifers (such as the Ogalala) and river systems.

He also revealed that Medicare costs have become the largest part of the state budget, even exceeding education, for the first time in state history. That includes an additional $100 million earmarked for women’s health.

To hear all of Sen. Perry’s interview, click play below:

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Best of KFYO

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to http://kfyo.com using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for KFYO Advisory Board quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive KFYO Advisory Board contests, events, coupons, presales, and much more delivered to you for FREE.