Energy Activity Slows in 4Q; Outlook Also Declines, Kansas City Fed Survey Says
January 11 2019 - 12:28PM
Dow Jones News
By Colin Kellaher
Energy activity in the middle of the U.S. fell moderately in the
fourth quarter as oil prices dropped, and expectations for future
activity also declined, according to a survey by the Federal
Reserve Bank of Kansas City.
The quarterly Tenth District Energy Survey's key index of
drilling and business activity fell to -13 in the fourth quarter
from 45 in the third quarter, marking the first quarterly decline
in nearly three years.
The bank said a drop in oil prices led to some pullback in
activity during the quarter, adding that several companies reduced
their 2019 capital spending plans.
The survey's future drilling and business activity index also
plummeted, falling to -19 from 57--the first negative posting since
early 2016, the bank said.
Companies surveyed said they need to see average oil prices of
$63 a barrel to prompt a substantial increase in drilling, but that
they expect oil will only reach the mid- to high-$50s this year.
West Texas Intermediate futures, the U.S. oil standard, were down
1.64% at $51.73 a barrel on the New York Mercantile Exchange around
midday Friday.
The Kansas City Fed's survey monitors oil- and gas-related
companies located or based in the Tenth District, which includes
Colorado, Oklahoma, Wyoming, Nebraska, Kansas, the northern half of
New Mexico and the western third of Missouri.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
January 11, 2019 12:13 ET (17:13 GMT)
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