HOUSTON—A recent survey by the Dallas office of the Federal Reserve System reveals a very somber and wary mindset by U.S. producers toward the upstream oil and gas (O&G) market. And that attitude is reflected in their plans for coping with the Covid-19-affected O&G market. Comments and data were collected from 165 E&P executives by the Dallas Fed during June 10-18 and released on Wednesday, June 24.
Among comments received was this thoughtful look ahead by one Texas producer: “This is a summary timeline for the E&P [exploration and production] industry. First, it was dismal during the ‘lockdown.’ Second, it is/will be miserable during the ‘transition’ (June–December 2020). Third, it will be somber in the ‘new normal’ (2021). The oil industry went in a deep hole in first-quarter 2020. We reached the bottom, and now we are trying to climb up. It will be quite a while (2022+) to get back up the hole, to the pre-COVID-19 level of activity and service pricing.”
https://www.worldoil.com//news/2020/6/26/recent-dallas-fed-survey-reveals-us-producers-mindset-strategy-for-moving-forward?id=31307113
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