Kansas City Fed: Energy Activity Fell Moderately in Q2


   
Dawn Gallagher
DTN Energy Reporter

   OAKHURST, N.J. (DTN) -- Results of the Federal Reserve Bank of Kansas City 
second quarter energy survey show that Tenth District energy activity fell 
moderately, with no changes expected in the next six months.

   Firms reported that oil prices needed to be an average $64 bbl for drilling 
to be profitable and $83 bbl for a substantial increase in drilling to occur. 
Natural gas prices needed to be $3.79 MMBtu to be profitable on average and 
$5.01 MMBtu for drilling to increase substantially.

   "District drilling and business activity declined somewhat in Q2 as oil and 
gas prices moderated from last quarter," said Megan Williams, associate 
economist and survey manager at the Federal Reserve Bank of Kansas City. "Firms 
reported falling employment, revenues, and capital expenditures and do not 
anticipate any changes in the coming months."

   The Federal Reserve Bank of Kansas City serves the Tenth Federal Reserve 
District, encompassing the western third of Missouri; all of Kansas, Colorado, 
Nebraska, Oklahoma and Wyoming; and the northern half of New Mexico. 

   The Kansas City Fed's quarterly Tenth District Energy Survey provides 
information on current and expected activity among energy firms in the Tenth 
District. The survey monitors oil and gas-related firms located and/or 
headquartered in the Tenth District, with results based on total firm activity.

    




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