• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 hours Reality catching up with EV forecasts
  • 4 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 4 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 9 days The Federal Reserve and Money...Aspects which are not widely known
  • 14 days US Oil Independence is a myth and will always be a myth
  • 14 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 17 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 17 days *****5 STARS - "The Markets are Rigged" by The Corbett Report
Oilfield Services Shine As Energy Earnings Lift Off

Oilfield Services Shine As Energy Earnings Lift Off

As earnings season kicks off,…

Could Canada Pass Something Similar To The Inflation Reduction Act?

Could Canada Pass Something Similar To The Inflation Reduction Act?

Canada’s Prime Minister Justin Trudeau…

Offshore Oil And Gas Is Back, Baby

Offshore Oil And Gas Is Back, Baby

Despite calls to reduce oil…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

U.S. Oil Production Recovery Speeds Up

Crude oil production in the United States grew faster during the first quarter of the year, the Dallas Fed reported in its quarterly industry survey, noting that costs also increased.

Price sentiment in the industry was guardedly bullish, with a majority of respondents in the survey expecting West Texas Intermediate to end 2022 at between $80 and $90 per barrel. A much smaller portion—about 5 percent—expected WTI to end 2022 at between $110 and $120. Interestingly, a bigger portion of respondents believed the U.S. benchmark could end the year at more than $120 per barrel.

Another interesting outtake from the survey is the biggest portion of respondents in the survey, at 41 percent, believe a WTI price of between $80 and $100 is sufficient for more producers to switch to production growth mode. While the Dallas Fed’s own data supports this, based on reactions from the Biden administration, production has not been growing anywhere near fast enough.

ADVERTISEMENT

However, it’s worth noting that about 30 percent of the respondents in the survey said that production growth plans were not dependent on oil prices. According to 59 percent, the main reason for production restraint was investor pressure to maintain capital discipline.

Among the other reasons motivating a cautious approach to production growth, respondents cited workforce shortages, limited availability of equipment, supply chain disruptions, and social, environmental, and governance issues.

ADVERTISEMENT

The Dallas Fed’s crude oil production index shot up to a reading of 45 in the first quarter of 2022, from 19.1 in the fourth quarter of 2021. The natural gas production index jumped to 40 from 14 in the period.

Costs, meanwhile, rose to a record reading of 77.1, from 69.8 in the fourth quarter of 2021. Oilfield services costs have been rising for five consecutive quarters, the Dallas Fed reported.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News