A Federal Reserve Bank of Dallas survey of U.S. energy executives shows about two-thirds of them believe crude oil production has peaked in the U.S.
The survey results, released this week showed 66% of 154 oil and gas firm executives believe U.S. crude oil production has reached its peak. The executives were from Texas, Louisiana and New Mexico. What wasn’t clear was if the executives believe it is a permanent or temporary peak.
Nearly three-quarters of executives from 148 oil and gas firms told the Dallas Fed that OPEC would have a bigger role in determining the price of crude oil going forward.
The COVID-19 pandemic has knocked global oil demand and prices, prompting deep cuts in drilling this year by shale oil producers. The U.S. last pumped 12.2 million bbl/d, taking top spot in global crude oil output.
Executives surveyed, on average, expect the price of WTI crude oil to be $43.27/bbl by the end of 2020. On Sept. 23, WTI was up 36 cents at $40.16/bbl.
Source: HART Energy