Texas oil activity “expanded strongly” in Q1 of 2021
The Dallas Fed is out with its latest quarterly snapshot of oil-and-gas metrics in its district, which includes the prolific but pandemic-battered shale regions in Texas and New Mexico.
Why it matters: The survey of oil-and-gas companies and contractors finds that the sector's activity "expanded strongly" in the first quarter of 2021.
"With the recent recovery in oil prices, the majority of firms in the survey can profitably drill a new well at current prices," it notes in discussing the chart you see above.
Yes, but: Via Reuters coverage of the report...
"While improved oil prices have boosted expectations for 2021, executives are cautious about the potential for Biden administration oil and gas policy changes or the threat that the Organization of the Petroleum Exporting Countries and partners could easily return oil to the global market."
What we're watching: Jobs. Last year's price and production declines led to significant layoffs.
53% of executives surveyed said they expect their employee count next December to be unchanged from December of 2020, while 39% expect some increase.