The Federal Reserve Bank of Kansas City says energy activity increased in the third quarter of the year in Oklahoma and other states that make up the bank’s Tenth District.
Chad Wilkerson, Oklahoma City Branch executive and economist at the Federal Reserve Bank of Kansas City, stated that the survey revealed that Tenth District energy activity accelerated, and a majority of firms reported higher revenues and profits.
He said drilling and business activity continued to outpace the previous year, and expectations increased further.
“District drilling and business activity grew in Q3, with additional growth expected over the next six months,” said Wilkerson. “Commodity prices have increased considerably from a quarter ago and a year ago, and firms also reported needing higher prices for drilling to be profitable for oil and
natural gas.”
In the survey, energy leaders responded to the question of what price is needed for drilling to be profitable for oil and natural gas. Their response average was $57 a barrel. The survey was released on the day that West Texas Intermediate crude oil prices were more than $79 a barrel.