Tenth District Energy Activity Expanded Moderately

The Federal Reserve Bank of Kansas City released its fourth quarter Energy Survey Jan. 8. According to Chad Wilkerson, Oklahoma City Branch executive and economist at the Federal Reserve Bank of Kansas City, the survey revealed that Tenth District energy activity expanded moderately but continued to lag year-ago levels.

“District drilling and business activity increased in Q4, indicating some recovery from historic lows in 2020,” said Wilkerson. “However, firms are increasing output with fewer employees, and additional job cuts are expected. A significant share of firms have plans to reduce emissions moving forward, and most firms also expected higher regulatory costs in the upcoming year.”

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 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/research/indicatorsdata/energy.

SOURCE: The Weekly Propane Newsletter, January 14, 2021. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.