January 6, 2021
Activity in the oil and gas sector jumped in fourth-quarter 2020, according to oil and gas executives responding to the Dallas Fed Energy Survey. The business activity index—the survey’s broadest measure of conditions facing Eleventh District energy firms—moved into positive territory, rising from -6.6 in the third quarter to 18.5 in Q4.
This is the first positive reading for the business activity index since Q1 2019, according to the Dallas Fed.
According to E&P executives, oil production stabilized after three quarters of decline, with the index rising from -15.4 to 1.0 in Q4. The natural gas production index increased eight points to -2.1.
On average, respondents expect a West Texas Intermediate (WTI) oil price of $50 per barrel by year-end 2021l. Survey participants expect Henry Hub natural gas prices of $2.76 per million British thermal units (MMBtu) at year-end.
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