Oil Production Faces Ongoing Headwinds
Ellen R. Wald, Ph.D. | Sep 29, 2022 11:11
The Federal Reserve Bank of Dallas' third quarter energy survey was released yesterday (Sept. 28). It provides an interesting look at oil and gas production in the most productive onshore region in the United States.
The survey recession , demand for oil will fall. Oil services firms are uncertain whether they will be able to access the capital they need to redeploy and upgrade equipment, because they are not getting long-term contracts that make these expenses advisable.
Even though oil production has increased markedly in the U.S., traders should keep abreast of the trends and concerns that businesses in the most productive region of the U.S. are facing. These issues indicate that traders should not assume the current resurgence in production will last. It is likely that it is already slowing down even if we aren’t yet seeing that in the production data.
For more insights from the third quarter energy survey, tune in to the Energy Week podcast on Tuesday, October 4 when my co-host and I will be speaking with Kunal Patel, a Senior Business Economist in the Research Department at the Dallas Fed and an architect of the survey.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.