All articles tagged with #dallas fed energy survey
Oil prices are high, but U.S. drillers are holding back on expansion, choosing to repair balance sheets rather than drill more wells as geopolitical uncertainties, particularly the Strait of Hormuz disruptions, weigh on investment plans; a Dallas Fed Energy Survey shows profitability thresholds but only about 21% of operators expect to meaningfully increase drilling this year.
Growth in the oil and gas sector stalled in Q1 2023, according to the Dallas Fed Energy Survey, with the business activity index at 2.1, down from 30.3 in Q4 2022. Oil and natural gas production increased at a slower pace compared to the prior quarter, while firms reported rising costs for a ninth consecutive quarter. The supplier delivery time index for all firms moved into negative territory, declining to -14.0 in Q1 from 14.4 in Q4, and the company outlook index turned negative, falling 27 points to -14.1.