• 6 minutes U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 10 minutes Iranian Sanctions - What Are The Facts?
  • 15 minutes U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 2 hours Can the World Survive without Saudi Oil?
  • 10 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 2 days COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 1 day $70 More Likely Than $100 - YeeeeeeHaaaaa
  • 9 hours German Voters Set to Punish Merkel’s Conservative Bloc
  • 1 day How Long Until We Have Working Nuclear Fusion Reactor?
  • 2 days China Thirsty for Canadian Crude
  • 4 hours Threat: Iran warns U.S, Israel to expect a 'devastating' revenge
  • 2 days China Tariff Threatens U.S. LNG Boom
  • 10 hours Saudi A Threatens to Block UN Climate Report
  • 2 days Cruise ship could get a 100'000$ fine for using illegal bunker fuel
  • 2 days UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 2 days China auto sales sink
  • 8 hours Nothing new in Middle East? Iran Puts On 'Show Of Strength' Military Exercise In Gulf
Oil Experts Divided As Iran Sanctions Loom

Oil Experts Divided As Iran Sanctions Loom

The world’s top oil trading…

Hurricane Michael’s Impact On Gasoline Demand

Hurricane Michael’s Impact On Gasoline Demand

Hurricane Michael had a significant…

Erwin Cifuentes

Erwin Cifuentes

Erwin Cifuentes is a Contributing Editor for Southern Pulse Info where he focuses on politics, economics and security issues in Latin America and the Caribbean.…

More Info

Dallas Fed Reserve Provides Optimistic Local Energy Outlook

Dallas Federal Reserve

The energy woes for one of the main oil producing areas of the United States may be a thing of the past, according to the latest quarterly report from the Dallas Federal Reserve.

The survey encompasses upstream energy firms located or headquartered in the Eleventh Federal Reserve District, which includes Texas, southern New Mexico, and a portion of Louisiana. It includes the Barnett Shale, Eagle Ford, Haynesville Shale, and the Permian Basin.

 

(Click to enlarge)

“Results suggest conditions were improving again in the third quarter,” Michael Plante, senior research economist and project manager for the latest Dallas Fed Energy Survey said in an interview the Midland Reporter-Telegram.

Nearly 62 percent of the 149 respondents to the survey believe that the price of oil, which has plummeted since 2014, will increase a year from now. At least 90 percent feel the West Texas Intermediate price must surpass the US$55 per barrel mark.

Most of those surveyed anticipate a notable increase in drilling activity, particularly in the second quarter of 2017.

A plurality of 48 percent of respondents from the report published on September 26th is also optimist over the price of natural gas.

Energy firms also reported a 25 percent spike in equipment utilization as well as a continued fall in the prices of services.

Despite the bright indicators, other factors were not so positive.

Production for oil and natural gas dropped for the third straight quarter, albeit a slower rate than previous periods. Jobs in the sector continued to be shed, while the employee indices for hours and wages plus benefits continued in the red.

“Based on the survey itself, (respondents) are saying the worst is over. But one thing I would point out, the comments told us there is uncertainty about recent price weakness and continued oversupply,” Plante said.

“The comments suggest people are still uncertain, but even if they’re uncertain, they think things will be better next year,” he added.

Aside from the energy industry, the Dallas Fed is also bullish over the manufacturing sector that has increased production during the month of September based on the results of another survey released on September 26th.

By Erwin Cifuentes for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News