U.S. oil producers plan to boost output despite rising costs
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Companies in the heart of the U.S. oil patch plan to keep boosting production this year despite rising costs.
Driving the news: The Dallas Fed's fourth-quarter 2021 survey of oil-and-gas execs finds that "costs rose sharply for a third straight quarter." However, most expect to keep boosting output as prices and demand have recovered from the pandemic.
Why it matters: The Dallas Fed's quarterly survey takes the pulse of companies in the region that includes the Permian Basin in Texas and New Mexico.
What they're saying: Anonymous comments take stock of the changing landscape.
- "The political pressure forcing available capital away from the energy industry is a problem for everyone. Banks view lending to the energy industry as having a 'political risk,'" one respondent said.
The big picture: The U.S. Energy Information Administration estimates domestic crude production will average 11.8 million barrels per day (bpd) this year, exceeding 12 million bpd late in the year.
- That remains below the pre-pandemic peak of around 13 million bpd.
Go deeper: A new warning on oil investment
