HOUSTON (Reuters) – Oil prices will need to rise further for energy companies to significantly expand drilling activities, according to a survey released on Thursday by the Federal Reserve Bank of Dallas.
U.S. energy companies have added rigs and boosted production to near record levels, as oil prices have more than doubled from a low of about $26 per barrel touched in early 2016.
Prices - Barrel - Activity - Survey - Firms
But prices above $60 a barrel are needed to see a significant uptick in activity, according to the survey, which questioned 134 firms headquartered in Texas, southern New Mexico and northern Louisiana.
West Texas Intermediate (WTI) crude was trading at about $59.50 on Thursday, down slightly from a 2-1/2-year high of $60.01 earlier this week.
Jump - Prices - Improvements - Cheaper - US
The jump in prices, coupled with technological improvements that make drilling cheaper, has pushed the U.S. rig count to 931, up about 43 percent from last year, according to data from General Electric Co’s oil services arm Baker Hughes.
Slightly more than half the survey’s respondents expect the rig count to continue to climb six months from now but nearly all said oil prices need to be above $60 a...
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One of the countries we liberated was Russia, too bad it seems to have cost us our liberty.