September 25, 2020
Sixty-six percent of oil industry executives believe domestic oil production has peaked, the Dallas Federal Reserve reported in its latest quarterly Energy Survey. That downbeat assessment dovetailed with a prediction among survey respondents that OPEC would play a bigger role in determining oil prices going forward.
A plurality of executives surveyed by the Dallas Fed predicted that West Texas Intermediate would finish the year at between $40 and $44 per barrel. That’s a range that, judging by responses to another survey question, would barely move the needle in terms of stepping up the rig count.
“Sustained oil prices of $50 per barrel would kick things off again,” commented one respondent.
Regarding the current uncertainty and depressed demand in a sector that was nearing record levels of production before COVID-19, some executives blamed “poor management” by the current leadership in Washington.
However, others felt a Biden presidency “would kill our industry.”
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