The US oil and gas sector showed evidence of “significant contraction” in the second quarter, with activity deteriorating most severely for oilfield services, the Federal Reserve Bank of Dallas said June 24 in its quarterly survey of 168 energy firms. Executives expect WTI oil prices to reach an average of $42.11/b by the end of 2020, up from the Q2 average of $37.75/b, and Henry Hub natural gas prices to be $2.15/MMBtu by year’s end, up from $1.61/MMBtu in Q2. The survey results reflected extensive cuts to production, capital spending and jobs in Q2 as the industry grapples with the coronavirus pandemic’s massive hit to oil demand and global prices. In the Dallas Fed’s 11th District, which […]