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ENERGY NEWS
US
ENERGY REVIEW
Oil and gas activity and production is rising in the United States, but so are cost pressures. Most exploration and production companies, as well as services firms, operating in Texas and New Mexico, expect to increase their capital spending in 2022 compared to 2021. Activity in other oilproducing US states has been also growing moderately lately, surveys from the Federal Reserve Banks of Dallas and Kansas City showed. By Tsvetana Paraskova
Output of oil and gas from the seven key shale plays is rising, while production in the US Gulf of Mexico is set for a new record this year with more offshore platforms coming on stream. Meanwhile, the American Petroleum Institute (API) called on Congress and the Administration to adopt policies to encourage development of responsibly produced domestic energy and design regulatory policies that provide certainty and incentivise investment in the oil and gas sector.
www.ogv.energy I February 2022
Cost pressures in US oil, gas sector intensify The oil and gas sector in the Eleventh Federal Reserve District, which includes Texas, northern Louisiana, and southern New Mexico, continued growing in the fourth quarter of 2021, the Dallas Fed Energy Survey showed at the end of December. The business activity index—the survey’s broadest measure of conditions facing energy firms—remained
elevated at 42.6, essentially unchanged from its third-quarter reading. Oil production increased at a faster pace than in Q3. However, costs rose sharply for a third quarter in a row. Among oilfield services firms, the index for input costs increased to a record high of 69.8, suggesting significant cost pressures. Only one of the 44 responding oilfield services firms reported lower input costs in Q4.
