Dallas Fed: Oil and gas industry is on fire

Dallas Fed: Oil and gas industry is on fire

The oil and gas sector continued its strong growth in the second quarter, according to executives polled by the Dallas Fed in its latest poll released Wednesday.

The survey’s broadest measure of the conditions facing energy companies, also known as the Business Activity Index, remains at 53.0.

But there is more good news for the US oil and gas sector, a sector facing extreme pressure from a particularly green administration, environmentalists, activist shareholders and appeals from the United States. IEA for a net zero world by 2050.

Oil production in the United States has increased, according to interviewed executives from E&P companies. The oil production index fell from 16.3 in the first quarter of 2021 to an astonishing 35.0 in the second quarter. This is the second highest score since the survey was put in place in 2016.

Gas production in the United States has also increased, according to the survey, with the gas production index rising from 16 to 35.0.

The capital spending index has risen from 31 to 42.4 among E&P companies, and executives surveyed expect it to increase. The expected level of capital spending for 2022 is 53.0.

Costs are also on the rise, with the research and development cost index rising from 3.9 in Q1 to 28.3 in Q2 among E&P companies.

Oil service companies have also seen general improvements. Operating margins have improved and the prices charged for services have also increased.

More importantly, the six-month outlook has improved significantly. The index for this fell from 70.6 in the first quarter to 71.9, the highest score on record.

Respondents pegged WTI at $ 70 by the end of 2021, with responses ranging from $ 49 per barrel to $ 85 per barrel. HH nat gas prices are expected to settle at 3.10 MMBtu by the end of the year.

By Julianne Geiger for OilUSD

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