Costs and uncertainty cloud oil outlook, says Dallas Fed

Oil production growth in leading U.S. oil-producing states has slowed. According to the latest survey by the Federal Reserve Bank of Dallas, the effects of inflation and supply chain problems, as well as overall economic uncertainty, have led executives to lower their expectations.

The survey of executes from 152 energy companies in New Mexico, Texas and Louisiana, found that business activity in the oil and gas industry fell to 30.3 in the fourth quarter, down from 46 in the third. The index was 57.7 in the Q2 of the current year, the highest score for the entire time of the survey.

Growth in U.S. shale oil production also showed signs of slowing. Production in the Permian Basin, the largest producing basin in the United States, is expected to increase by 37,000 barrels per day next month. The U.S. Energy Information Administration (EIA) reported that it was the smallest increase in seven months.