FX.co ★ Oil And Gas Sector Activity Relatively Unchanged In Q1

The Dallas branch of the Federal Reserve Bank announced the findings of its latest Energy Survey on Wednesday, indicating that activity in the oil and gas industry saw minimal changes in the first quarter of 2024.

The survey's most comprehensive measure of the conditions faced by energy companies in the Eleventh District, known as the business activity index, reported a score of 2.0 for the first quarter. This suggests that there was hardly any growth during this period, mirroring results from the previous quarter.

According to the industry executives who responded to the survey, oil and gas production experienced a decline during this quarter. The oil production index dropped to -4.1 in Q1, down from 5.3 reported in the last quarter of the previous year.

The Dallas Fed also reported that the natural gas production index took a negative turn, plummeting to -17.0 in the first quarter from a previous high of 17.9 percent in the prior three months.

Lastly, the report highlighted a slight acceleration in cost increases for both oilfield services and exploration and production companies.