By Alex Mills
Even though crude oil and natural gas production in the U.S. is on a record-setting pace, a majority of the oil companies that participated in a recent survey see positive and negative economic factors impacting future business activity.
The Dallas Fed Energy Survey’s business activity index released this week surveyed 147 oil and gas companies during Sept. 13-21 that revealed the industry continues to witness rising operating costs, but crude oil and natural gas prices are beginning to reverse many negative opinions.
“Firms reported rising costs for an 11th consecutive quarter,” according to the Dallas Fed. “Among oilfield services firms, the input cost index remained positive but declined from 41.2 to 33.4. Among E&P firms, the finding and development costs index edged up from 14.9 to 18.3. Additionally, the lease operating expenses index was essentially unchanged at 25.6.”
While drilling activity has declined during the past year, crude oil prices are up.
Drilling activity is down 20% since September 2022, according to the Baker Hughes Rotary Rig Count. The U.S. rig count…