Activity Flat for US 10th Dist. Energy Firms in 1Q 2019
Energy activity for the U.S. Tenth District was flat in the first quarter of 2019, according to results from the quarterly energy survey released today by the Kansas City Fed.
The drilling and business activity index for energy firms in western Missouri, Nebraska, Kansas, Oklahoma, Wyoming, Colorado and northern New Mexico increased from -13 to 0 in first quarter.
This indicates no change in activity.
The year-over-year drilling and business activity index was also flat.
Additionally, indexes for both employment and wages and benefits dipped further first quarter.
Respondents from the energy firms were also asked a series of special questions including what oil price they believe is currently necessary for drilling to be profitable.
The average response was $52 per barrel for the oil price. Responses ranged from $30 to $85 per barrel.
The first quarter average of $52 was slightly lower than $55 in third quarter of 2018, but matched the price reported in first quarter of 2018.
Note: This question is asked in alternate quarters. The other alternating quarters, respondents are asked what price they need for a substantial increase in drilling.
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