U.S. oil producers plan to boost output despite rising costs
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