Higher oil prices needed to sharply boost U.S. drilling: Dallas Fed

29 Dec 2017   Shale Oil

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. 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. 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 […]

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