Dallas Fed indicator of Texas oil and gas industry plunges, shows deep energy recession
The Texas oil and gas industry is in a deep recession, one indicator from the Federal Reserve Bank of Dallas shows.
The business activity index, a measure of the industry based on surveys of energy executives, has fallen to a historic low, plummeting from -4.2 in the fourth quarter of 2019 to -50.9 in the first quarter of 2020.
It’s the lowest reading in the survey’s four-year history and “indicative of significant contraction,” Dallas Fed analysts write. It’s the fourth consecutive quarter indicating negative growth for the industry.
On average, respondents to the survey expect West Texas Intermediate oil prices to be $40.50 per barrel by the end of 2020, though responses ranged from $20 to $65 per barrel.