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Data: Federal Reserve Bank of Dallas; Chart: Sara Wise/Axios

A Dallas Fed report helps put the oil industry's response to the price and demand collapse into historical context. They find that U.S. producers' capital spending will decline by at least 35% in the second quarter en route to an even steeper annual decline.

Why it matters: That's bigger than declines in the 2008-2009 financial crisis and the oil price collapse in the mid-2010s (check out the chart above).

  • The number of drilling rigs deployed, which is a metric of current activity and future output, has greatly slid.

Don't forget: Prices also remain far below profitable levels for wide swaths of the distressed sector in the U.S. and elsewhere.

  • A separate Dallas Fed survey of energy companies in their region found that prices needed to cover operating expenses at existing wells averaged $23 to $36 per barrel.
  • And the surveys from the Dallas Fed and the Kansas City Fed (which covers producing states including Colorado, Wyoming, and Oklahoma) show prices are nowhere near what's needed to profitably drill new wells.

Meanwhile, job losses are piling up. The Houston Chronicle reports that another 1,000 job cuts in the industry were announced in Texas just this week.

Go deeper

Dion Rabouin, author of Markets
Aug 17, 2020 - Economy & Business

The Fed is back in focus amid Congress' stimulus impasse

Fed Chair Jay Powell. Photo illustration: Aïda Amer/Axios. Photo by Samuel Corum/Getty Images

Even though the Fed's policymaking committee has no meeting scheduled until mid-September, more attention is turning to the central bank as inflation has begun to pick up and Congress left town without delivering a new round of fiscal stimulus.

Why it matters: Since its unprecedented intervention into financial markets in March, the Fed has been seen as the driver of financial markets — holding up stock and bond prices through its massive bond-buying programs.

NY declares state of emergency amid concerns over Omicron COVID variant

Governor Kathy Hochul makes an announcement about a new plan transforming Penn Station on Nov. 3, 2021. Photo: Lev Radin/Pacific Press/LightRocket via Getty Images

New York Gov. Kathy Hochul on Friday declared a state of emergency amid rising COVID-19 cases and the newly-identified Omicron variant of the virus.

Driving the news: The declaration enables the state to acquire supplies to fight a potential surge in cases, increase hospital capacity and combat potential staff shortages, NBC's local affiliate reports.

33 mins ago - Health

First cases of COVID-19 Omicron variant discovered in United Kingdom

People wearing masks walk in London on Nov. 25. Photo: Li Ying/Xinhua via Getty Images

Two cases of the new COVID-19 Omicron variant were detected in the United Kingdom overnight, the U.K. Health Security Agency announced Saturday.

Why it matters: The discovery comes as the world scrambles to respond to concerns over the new variant, discovered in South Africa earlier this week.