September 29, 2016
Energy business activity increased in Q3 2016, according to oil and gas executives responding to a survey distributed through the Federal Reserve Bank of Dallas. Though indicators and conditions improved, persistent weakness continues in oil and gas employment and production.
Capital spending increased in Q3 as did equipment utilization. However, production fell for the third consecutive quarter, but at a slower rate than in previous quarters. On the more positive side, six-month outlooks improved, with respondents continuing bullish about price increases. Still, concerns were shared about continued oversupply and recent oil price weakness.
The survey quizzed exploration and production (E&P), and oil and gas (O&G) support service firms in the Fed’s Eleventh District, which covers Texas, northern Louisiana and southern New Mexico.
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