• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 7 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 5 days Energy Armageddon
  • 3 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 15 hours "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 21 hours "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 18 hours "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 21 hours The Federal Reserve and Money...Aspects which are not widely known
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 days Сryptocurrency predictions
  • 2 days Goldman Betting on Cryptocurrencies
  • 10 days Putin and Xi Bet on the Global South

Dallas Fed Survey Sees Activity Increasing At Solid Pace In U.S. Oil And Gas

Despite falling oil prices, a Dallas Fed report surveying oil and gas executives shows activity in the oil and gas sector expanded at a robust clip in the third quarter, suggesting the pace of expansion remains solid even after a slight slowdown. 

The Business Activity Index looks at the broadest measure of conditions facing Eleventh District energy firms.

The Dallas Fed also noted that costs continued to increase for a seventh straight quarter, with the indexes now near historical highs. Among oilfield services firms, the index for input costs remains high but has fallen below the record high of 83.9. Virtually all of the 58 responding oilfield services firms reported higher input costs. 

Among E&P firms, the index for “finding and development” costs fell slightly to 64.7 compared to 70.6 in the previous quarter. Additionally, the index for lease operating expenses was 70.2, slightly lower than 74.1 recorded in the previous quarter.

The majority of U.S. oil and gas companies have kept spending low or increased capex slightly despite high commodity prices, preferring to return excess cash flow to investors in the form of share buybacks and dividends.

 According to data from Bernstein Research, the seven supermajors–including ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), BP (NYSE: BP) and Shell (NYSE: SHEL)--are poised to return $38 billion to shareholders through buyback programmes this year, with investment bank RBC Capital Markets putting the total figure even higher, at $41bn. 

In 2014, when oil was trading over $100/barrel, we only saw $21 billion in buybacks. This year’s figure rivals that of 2008. Big Oil’s capex and production have remained mostly flat despite reporting record second-quarter profits. 

By Alex Kimani for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

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