U.S. oil and gas executives' outlook turned negative for the first time since the low point of the last oil bust, according to results of a survey released on Jan. 3 by the Federal Reserve Bank of Dallas.
A survey of executive sentiment fell to -10 from 47 in the prior quarter, the first negative reading since early 2016, when U.S. crude prices plummeted to $26 per barrel.
More than half of executives said they expect lower capital spending in 2019.
Still, executives are predicting the U.S. crude will end the year trading around $60 per barrel—a 30% increase over current prices.
Responses ranged from $50 to $64.99 per barrel, according to the survey conducted Dec. 12-20. Only 9% of executives said they were planning for a per barrel price below $50 for the year.
The U.S. benchmark West Texas Intermediate crude was trading around $46.61 on the morning of Jan. 3.
Recommended Reading
Exclusive: Tenaris’ Zanotti: Pipes are a ‘Matter of National Security’
2024-04-12 - COVID-19 showed the world that long supply chains are not reliable, and that if oil is a matter of U.S. national security, then in turn, so is pipe, said Luca Zanotti, U.S. president for steel pipe manufacturer Tenaris at CERAWeek by S&P Global.
Exclusive: Sabine CEO says 'Anything's Possible' on Haynesville M&A
2024-04-09 - Sabine Oil & Gas CEO Carl Isaac said it will be interesting to see what transpires with Chevron’s 72,000-net-acre Haynesville property that the company may sell.
Exclusive: Liberty CEO Says World Needs to Get 'Energy Sober'
2024-04-02 - More money for the energy transition isn’t meaningfully moving how energy is being produced and fossile fuels will continue to dominate, Liberty Energy Chairman and CEO Christ Wright said.
Chesapeake, Awaiting FTC's OK, Plots Southwestern Integration
2024-04-01 - While the Federal Trade Commission reviews Chesapeake Energy's $7.4 billion deal for Southwestern Energy, the two companies are already aligning organizational design, work practices and processes and data infrastructure while waiting for federal approvals, COO Josh Viets told Hart Energy.
Exclusive: Calling on Automation to Help with Handling Produced Water
2024-03-10 - Water testing and real-time data can help automate decisions to handle produced water.