June 25, 2020
Activity in the energy sector deteriorated further in the second quarter, the Federal Reserve Bank of Dallas said Wednesday. The Dallas Fed’s latest Energy Survey of oil and gas executives found that the business activity index reached the lowest level in its four-year history, as did the oil production index.
Exploration and production (E&P) and oilfield services firms both saw continued declines in business activity.
“The impact of the coronavirus pandemic on the oil and gas industry remains severe and widespread,” said Michael Plante, Dallas Fed senior research economist.
He added, “Few respondents expect global oil consumption to return to pre-COVID-19 levels in the immediate future, with only 5% of respondents believing it will be back to normal by fourth quarter 2020. Almost 60% believe consumption will have returned to normal by fourth quarter 2021.”
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