Sunday, November 27, 2022

Energy activity grows, albeit slower, in Fed’s Tenth District

The Federal Reserve Bank of Kansas City released the third quarter Energy Survey last week, which revealed Tenth District energy activity grew solidly, while expectations for future activity eased somewhat.

“Despite the pace of growth slowing slightly, District drilling and business activity remained solid in Q3,” said Chad Wilkerson, Oklahoma City Branch executive and economist. “Firms reported lower growth in profits and revenues but posted the highest level of employment gains in survey history.”

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. Survey results reveal changes in several indicators of energy activity, including drilling, capital spending, and employment. Firms also indicate projections for oil and gas prices. All results are diffusion indexes – the percentage of firms indicating increases minus the percentage of firms indicating decreases.

Results from past surveys and release dates for future surveys can be found at https://www.kansascityfed.org/surveys/energy-survey.