Oil and gas executives responding to the Dallas Fed Energy Survey have stated that the energy sector activity has expanded strongly in the second quarter of 2018.
The business activity index—the survey’s broadest measure of conditions facing Eleventh District energy firms—rose from 40.7 in the first quarter to 44.5 in the second—the highest level since the survey began in 2016. The increase was driven by both exploration and production (E&P) and oilfield services firms.
Oil and gas production increased for the seventh quarter in a row, according to executives at E&P firms. The oil production index advanced from 34.3 in the first quarter to 39.0 in the second.
Furthermore, the natural gas production index moved up from 25.0 to 33.4. Both indexes are at their highest levels since the survey began and suggest that oil and gas production rose at an accelerated rate relative to last quarter.