DALLAS (KRLD) - Oil and gas production has dropped to its lowest level since the Dallas office of the Federal Reserve started surveys of companies in the sector four years ago. At noon Wednesday, West Texas Intermediate was trading at $24.58 a barrel, up $.57 from Tuesday.
The survey found 62.1% of companies have seen a decrease in their level of business activity over the past three months, 31 percent reported a drop in employment and 36.5% reported a drop in employee hours.
The survey found the average well operator in the Eagle Ford Shale needs oil to sell for at least $23 to cover operating expenses of current wells; the Permian basin would need oil at $26.
Plante says most companies reported a "break-even" price for new wells at about $50, but the survey found the average prediction for the price of oil at the end of this year to be $40.50.