U.S. oil production growth picked up the pace in the fourth quarter. A big part of the higher capital spending in the U.S. oil industry will be because of cost inflation. Despite cost inflation, the largest oilfield service firms are optimistic that a multi-year upcycle in the industry has begun. U.S. oil producers are raising capital spending and activity this year, but they have to contend with surging inflation as cost pressures intensify. While oil production growth picked up the pace in the fourth quarter, costs jumped sharply for a third consecutive quarter to a record-high reading among oilfield services firms “suggestive of significant cost pressures,” the Dallas Fed Energy Survey for Q4 found. In 2022, part of the higher capital spending in the U.S. oil industry will be because of cost inflation. This will not be the highest portion of the increased expenditure, but it will contribute to […]