Oil, Gas Activity Down for US 10th Dist. Energy Firms
Oil and gas activity among U.S. 10th District energy firms dropped in the fourth quarter of 2019, according to the Kansas City Fed’s quarterly energy survey.
The drilling and business activity index for energy firms in Colorado, Kansas, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri dropped to -48, down further from -23 in 3Q 2019.
On a more positive note, the survey found that the revenues index improved and the wages and benefits index remained positive. The employment index was flat.
Looking at index patterns year-over-year, wages and benefits were slightly positive. However, drilling and business activity declined from -21 to -50 and the following indexes also declined:
- total revenues
- delivery time
- employee hours
Respondents also indicated oil prices needed to average $65 per barrel for drilling to increase. They said natural gas prices would need to average was $3.66 per million Btu.
Energy firms in the 11th District (Texas, northern Louisiana and southern New Mexico) also saw lower oil and gas activity in 4Q 2019.
To contact the author, email Valerie.Jones@Rigzone.com
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