U.S. drilling activity continued to contract in the fourth quarter, and the sense of gloom among shale drillers in Texas remains palpable. The latest data from the Dallas Federal Reserve shows that the business activity index – a broad measure that captures conditions in the energy sector in Texas – remained in negative territory, although narrowed slightly from a reading of -7.4 in the third quarter to -4.2 in the fourth. Oil producers are trying to ride out the storm, but that means a steep fall in activity for service firms. The activity reading for the oilfield services segment saw a -22.1 reading. Anything in negative territory signals a contraction. E&P firms specifically saw modest growth, with the index rising from zero to 5.4 in the fourth quarter. But employment posted a third consecutive negative reading. The Dallas Fed Energy Survey offers a treasure trove of information. The quarterly […]