US Energy Executives Do Not See Much Recovery Left In 2020 - Dallas Fed Survey

US Energy Executives Do Not See Much Recovery Left in 2020 - Dallas Fed Survey

Executives in the US energy industry are not placing much hope on business recovering for the rest of the year amid the coronavirus pandemic, the Federal Reserve Bank of Dallas said in a survey released Wednesday

WASHINGTON (Pakistan Point News / Sputnik - 23rd September, 2020) Executives in the US energy industry are not placing much hope on business recovering for the rest of the year amid the coronavirus pandemic, the Federal Reserve Bank of Dallas said in a survey released Wednesday.

"Activity in the oil and gas sector declined modestly in third quarter 2020, according to oil and gas executives," the Dallas Fed Energy Survey said. "The business activity index - the survey's broadest measure of conditions facing Eleventh District energy firms - remained in negative territory but improved from -66.1 in the second quarter to -6.6 in the third quarter, suggesting that the pace of the contraction has significantly."

The survey said oil and gas production indexes rose significantly but remained negative, suggesting a moderation in production declines.

"Conditions among oilfield services firms continued to deteriorate, albeit at a slower rate," it said. "Firms found some relief as the input costs continued to decline (but) labor-related indicators fell again. The aggregate employment index posted a sixth consecutive negative reading."

It said the company outlook index returned to barely positive territory in the third quarter. "The near-zero reading indicates the outlook remained relatively unchanged, a stabilization from the sharp deterioration seen over the prior two quarters. Additionally, fewer firms noted rising uncertainty this quarter than last, and the aggregate uncertainty index fell 19 points to 17.2."

As for oil prices, the respondents expected the US crude benchmark, the West Texas Intermediate (WTI), to average $43.27 per barrel by end-2020, from Wednesday's level of around $40 a barrel. Henry Hub natural gas prices were forecast to average $2.55 per million British thermal units, compared with current prices hovering at $2.11 per mmBtu.