The Federal Reserve Bank of Kansas City released the second quarter Energy Survey today. 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 declined sharply again in the second quarter and was expected to remain largely unchanged moving forward.
“District energy activity dropped considerably again during the second quarter of 2020, but many firms expected some stabilization heading forward,” said Wilkerson. “A majority of firms in our survey applied for and received SBA PPP loans, but low energy prices have hurt profitability. Most regional firms do not plan to increase production levels until oil prices recover more.”
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 Tenth 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. A summary of the survey is attached. Results from past surveys and release dates for future surveys can be found at https://www. kansascityfed.org/research/indicatorsdata/ energy.
The Federal Reserve Bank of Kansas City serves the Tenth Federal Reserve District, encompassing the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma and Wyoming; and the northern half of New Mexico. As part of the nation’s central bank, the Bank participates in setting national monetary policy, supervising and regulating numerous commercial banks and bank holding companies, and providing financial services to depository institutions. More information is available online at www.kansascityfed. org.