Oil and gas executives polled by the Dallas Fed in a survey released Wednesday fear recession and supply shortages, with optimism waning this quarter despite solid business activity. Oil and gas executives told the Dallas Fed that recession remains a key concern amid heightened uncertainty. “It’s tough to tell where these crosscurrents are headed. On one hand, we don’t know if anyone has noticed, but the two-year to 10-year Treasury yield curve is inverted, implying recession, and China is on lockdown basically every other day, so that means lower prices in the near term (probably),” one executive commented. However, the same executive noted, while long-term demand is strong and OPEC continues to underperform, “shale core exhaustion” and inventory concerns remain key issues. “Shale will likely tip over in five years, and U.S. production will be down 20 to 30 percent quickly. When it does—this feels like watching the steam […]