The Federal Reserve Bank of Dallas released the results of its third-quarter Energy Survey.
Some of the comments from those on the ground, including oil fields, were pretty interesting to say the least. The remarks essentially offered a greater insight into what is currently transpiring than what the benchmark prices can tell us.
Here are some of the comments posted in the survey:
“No one is interested in giving capital to E&P firms. It’s wonderful news for long-term prices.”
“I steered my company back into some Permian Basin projects in West Texas, and now the U.S. Environmental Protection Agenda (EPA) is wanting to label the Permian Basin as a “non-compliance” area based upon one air sampling station outside of Carlsbad, New Mexico. The overreach of the federal government never ceases to amaze me. Delays in delivery of contracted frac [hydraulic fracturing] sand, pumps, oil country tubular goods and even drilling rigs are impairing project timing. Worker availability is hampering project timing also, along with a dearth of truckers.”
“The administration is trying their best to destroy our energy economy.”
“The administration is holding us back, with no love of oil.”
“Steel tariffs and import quotas are adversely affecting our business. We desperately need additional tubulars (casing) to be made available to the market. Numerous customers have delayed drilling due to the price of oil country tubular goods.”
“The supply chain is slowly improving, but it’s still far from prepandemic levels. We still see significant lead times for electrical equipment, heavy industrial items and refined petroleum products. Labor shortages will continue to drive up wages as competition for skilled workers continues to increase. There simply are not enough skilled workers for the positions available.”
Put simply, labor shortages, the supply chain crisis, inflation, and an administration that is making life harder for the energy sector are the current trends in the oil and gas industry.
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