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Texas energy companies tell Dallas Fed business is good, 2017 might be better

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Written by Jeffrey Weiss

Click HERE to Read the Article by the Publisher.


The Dallas Federal Reserve Bank released its quarterly Energy Report today. It’s the result of a survey of 154 Texas energy businesses taken  Sept. 14-22. Of the respondents, 70 were E&P firms and 84 were O&G support services firms.
The broadest measure, the business activity index, shows a pretty good boost. It sat at 13.8 last quarter. The new number is 26.7.
Here are some of the specific items the survey looked at:
Oil prices need to go up significantly before business activity will grow much in the oil fields. Over 90 percent of respondents said they were looking for $55 a barrel or more. The average WTI spot price during the survey was $44.19.
When might that happen? Maybe next year.
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As for natural gas, most of the respondents were less optimistic about next year. But some were looking at a rise in production.
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For the companies that did expect a rise in production, none of them suggested it would be associated with a rise in the price of gas.
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Written by Jeffrey Weiss

Click HERE to Read the Article by the Publisher.

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