Shale companies in U.S. are concerned about labor shortage in 2023

As it was stated by the Federal Reserve Bank of Dallas representatives, prospects of further cost increase disturb top managers of U.S. shale companies while they are facing challenges with hiring and retaining workers.

According to data shown by the bank’s recent quarterly energy survey, most respondents stated that they expect to see an increase in capital spending in 2023 compared with the levels of the current year. Some participants of the survey noted they expect a slight increase, while others said they expect significant growth. The majority of respondents also forecast a barrel of WTI oil to cost $80 or more by the end of 2023, which is higher than the current prices. At the same time, participants of the survey don’t think any notable increase in production is possible next year because of underlying inflation, supply chain issues, and labor shortage.

One of the survey participants stated that the labor market is still extremely tight, and their company relies heavily on rotational employees for equipment servicing. The respondent added that Permian Basin infrastructure is likely to be at its max capacity, while the number of safety incidents is currently increasing due to poor road conditions and traffic.