sector,” said Dallas Fed Senior Economist Michael D. Plante.
Firms also were impacted by Hurricane Harvey.
A little more than half of responding oil and gas executives said the storm had a slight negative impact on their
business. However, most respondents expect that their business will not be negatively affected 6 months from now.
“When asked about the broader energy sector—which includes refineries—many believe there will be some minor
lingering effects 6 months from now,” said Plante.
When asked about where they think US crude oil production will stand at the end of 2018, 30% of respondents said
they see it between 9. 5-9.99 million b/d, and 39% said they
see it between 10-10.49 million b/d.
Third-quarter oil and gas production, meanwhile, increased for a fourth quarter in a row, according to executives
at exploration and production firms. The survey’s oil production index rose to 19. 3 in the third quarter from 10. 2 in
the second quarter, while the natural gas production index
rose to 17. 3 from 10. 6.
Labor market indexes point to rising employment and
employee hours, albeit at a slower pace than last quarter,
the survey indicated. Growth in employment was driven
primarily by oil field services firms. The employment index
was 24.6 for services firms vs. 5. 2 for E&P firms.
The company outlook index posted a sixth consecutive
positive reading and rose to 28. 2 in the third quarter from
20. 3 in the second quarter. The uncertainty index regarding the outlook plunged to 4. 9 from 35. Just 22.5% of firms
reported increased uncertainty about the future, down from
46.7% last quarter.
On average, respondents expect West Texas Intermediate oil prices to be at $50.20/bbl by yearend, with responses
ranging from $40/bbl to $63/bbl. WTI spot prices averaged
$49.91/bbl during the survey collection period.
Survey data were collected Sept. 13-21. Of the respondents,
78 were E&P firms and 65 were oil field services firms.
14th bid round
ExxonMobil Corp. will partner with Brazilian state-owned
Petroleo Brasileiro SA (Petrobras) on six exploration blocks
in the Campos basin off Brazil.
The firms were awarded the blocks on Sept. 27 as part of the
country’s 14th bid round conducted by the National Agency of
Petroleum, Natural Gas, and Biofuels (ANP). ExxonMobil and
Deputy Energy Sec. Dan Brouillette said in separate remarks
that substantial progress has been made on CCS technologies. However, he pointed out that a single oil and gas operator injects 26 times more carbon dioxide per day than
is handled by the nation’s largest and newest CCS facility,
which he said illustrates why the industry is the right group
to examine the CCS issue.
The CCS study also will examine future energy demands,
and identify current barriers to economic deployment of
CCS facilities at scale, the NPC representative said. Perry
asked that it lay out a road map to an economic framework
to advance CCS’s development and deployment and identify
legal, regulatory, or liability obstacles to commercial CCS investment, she said.
The secretary, who also was joined by US Interior Sec.
Ryan Zinke, praised the council’s past work, noting that
2014 and 2016 NPC reports on emergency preparedness
were critical to the successful response to Hurricane Harvey
several weeks ago.
Plains All-American Pipeline LP Chief Executive Officer
Greg L. Armstrong, who has been elected NPC chair, concurred. “The importance of the emergency preparedness reports to the Harvey response is a perfect example of why the
NPC exists: We are here to share the collective experience of
the industry to provide a public benefit,” he said.
Devon Energy Corp. Chairman Emeritus J. Larry Nichols
was elected vice-chair of NPC, which has elected vice-chair
of the council, which has about 200 members representing
all segments of the oil and gas industry as well as a broad
cross section of other businesses.
Dallas Fed: 11th District
oil, gas activity grew at
slower pace in 3Q
Third-quarter oil and gas activity in the Eleventh Federal Reserve District encompassing Texas, southern New Mexico,
and North Louisiana expanded for a sixth straight quarter,
but growth slowed compared with the second quarter, according to the latest Federal Reserve Bank of Dallas Energy
Survey of upstream industry executives in the region.
The survey’s business activity index—its broadest measure of conditions among Eleventh Federal Reserve District
industry firms—fell to 27. 3 in the third quarter from 37.3 in
the second quarter. Positive readings in the survey generally
indicate expansion, while readings below zero generally indicate contraction.
“Oil prices continued to be depressed this quarter relative
to the start of the year, and this has restrained growth in the