Activity in the oil and gas sector expanded strongly in first quarter 2021, according to oil and gas executives responding to the Dallas Fed Energy Survey. The business activity index—the survey’s broadest measure of conditions facing Eleventh District energy firms—soared from 18.5 in the fourth quarter to 53.6 in first quarter 2021, reaching its highest reading in the survey’s five-year history. Exploration and production (E&P) and oilfield services firms both experienced a strong expansion in activity.
Oil and gas production increased, according to E&P executives. The oil production index rose from 1.0 in the fourth quarter to 16.3 in the first quarter. Likewise, the natural gas production index turned positive and increased 18 points to 15.9.