New energy indicator data from TX, OKC released

By Staff | October 24, 2017

The Federal Reserve Bank of Dallas has added a new data compilation section to its regional energy indicators report. New this month are charts showing the 3-month and 12-month change in rigs by county. As the data shows, the Delaware Basin portion of the Permian Basin is undergoing fluctuations that include a general rise in rigs over the course of the year. But, in the past three months, certain counties are adding rigs while others in the Basin are dropping rigs. 

The Federal Reserve Bank of Kansas City, the unit that represents the Bakken and the SCOOP/STACK plays also had new information out that shows the expected oil price along with a handful of confidential statements made by industry survey participants. Check out some of the graphics, or, read some of the commentary below. 

Selected Comments from FRB of Kansas City:

“We are moving ahead with the expectation that commodity prices may not materially improve for years. We can grow and be profitable at these levels as long as we watch our cost structure carefully.”

“Global market tightening due to continued OPEC production cuts and growing global demand are driving price expectations. Demand growth and reduced investment in long lead offshore developments may also give way to higher long-term prices.”

“We continue to balance expenditures and income to maximize growth and avoid additional debt.”

“Low worldwide demand growth and resiliency in supply are driving our oil price expectations.”

“Due to the large quantities of natural gas that can be produced from the Marcellus and other shale areas, I don’t see natural gas prices going up that much in the next couple of years. However, long-term I see natural gas prices going up as these excess quantities can be exported.”

“There is ample supply in the U.S. and abroad to keep natural gas prices in the $3.00 to $4.00 per million btu range for years ahead.”

“Saudi Arabia will continue to prop up price until after the Saudi Aramco IPO, which appears may still be 18 months out. By that time expectations are that demand will have caught up to supply, and then I expect more natural price inflation.”