The latest energy survey by the Federal Reserve Bank of Kansas City showed a slight increase in activity.
The 3rd quarter survey result was described a “moderate increase in Tenth District energy firm activity,” according to a release by the Bank.
“For the first time in two years, firms reported rising business activity and revenues last quarter,” said Chad Wilkerson, vice president, economic and Oklahoma City Branch executive at the Federal Reserve Bank. “On average, though, firms need energy prices to be slightly higher than recent prices in order to be profitable.”
The survey covers Oklahoma, Wyoming, part of New Mexico, Nebraska, Colorado, Kansas and the western third of Missouri. It ran from Sept. 15-30 and showed the drilling and business activity index grew to 26 in the third quarter from 0 in the second quarter.
On average, firms also projected West Texas Intermediate prices to be $49/bbl by yearend 2016 and $57/bbl by yearend 2017.