Federal Reserve Bank of Kansas City reports moderate second quarter rise in Tenth District energy activity as growth expectations cool

The Federal Reserve Bank of Kansas City released its second-quarter Energy Survey, showing that energy activity in the Tenth District increased at a moderate pace while expectations for further growth softened from the previous quarter. Drilling activity rose during the quarter, supported by oil prices that remained elevated for most of the period, although firms still expected future drilling activity to expand rather than contract. Capital expenditures were up on net from a year earlier. About one-third of firms reported higher spending plans than at the start of the year, while about half said their plans were unchanged. The quarterly survey covers oil and gas-related firms located or headquartered in the Tenth District and reports diffusion indexes across indicators including drilling, capital spending, employment and firms' oil and gas price projections.