The Federal Reserve Bank of Kansas City published its fourth quarter Tenth District Energy Survey, reporting that regional energy activity fell sharply and that respondents expect further contraction over the next six months. Drilling and business activity decreased to their lowest level since 2020, with the decline linked in part to West Texas Intermediate (WTI) oil prices falling below firms’ average profitable price of USD 61 per barrel. The outlook for 2026 investment was mixed, with similar shares of firms planning to increase investment, decrease investment, or leave it unchanged; the survey tracks changes in indicators including drilling, capital spending, and employment, and reports results as diffusion indexes across oil and gas-related firms in the Tenth District.
Federal Reserve Bank of Kansas City 2025-01-09
Federal Reserve Bank of Kansas City Q4 Energy Survey shows sharp contraction in Tenth District energy activity
The Federal Reserve Bank of Kansas City's fourth quarter Tenth District Energy Survey indicates a sharp decline in regional energy activity, with expectations of further contraction in the next six months, partly due to West Texas Intermediate oil prices falling below USD 61 per barrel. The survey reveals mixed investment outlooks for 2026, with firms divided on increasing, decreasing, or maintaining investment levels.