The quarterly Federal Reserve Bank of Dallas Energy Survey was recently released, and it showed a positive outlook for the oil and gas sector – much to the delight of energy executives. According to the survey, Eleventh Federal Reserve District energy firms expanded their activity in the first quarter of 2017. The business activity index was positive, which is a general indication of expansion.
Executives who responded to the survey were happy with all of the survey measures as they indicated further expansion beyond the first quarter. They noted that increased activity was probably due to the fact that breakeven prices to drill a new well have fallen and are now about six percent less than last year. According to those who were surveyed, it is now possible to drill new wells in the Permian Basin or Eagle Ford and be profitable with prices as low as $50 per barrel and in some cases, lower.
E&P firms indicated that the oil production index rose to 13.1 and the natural gas production index rose to 17.6. This was the second quarter in a row of growth. Outlook overall among oilfield service firm executives and E&P firm executives was positive, and many expected to increase spending in 2018. They also expected to see West Texas Intermediate (WTI) oil price to climb to $53.49 by the end of 2017, negating recent oil price declines.
As oil and natural gas companies look to expand operations and increase spending, Vista Sand and its owner and leadership team expect to see big things in the frac sand industry now and into the future. Frac sand is increasingly being used in proppants as it’s a more cost-effective solution. Learn more about Vista Sand’s frac sand products, operations, safety record, and latest projects today.