Tenth District Energy Activity Expanded Moderately

FOR IMMEDIATE RELEASE
January 8, 2021

CONTACT: Pam Campbell

KANSAS CITY, Mo. – The Federal Reserve Bank of Kansas City released the fourth quarter Energy Survey today. According to Chad Wilkerson, Oklahoma City Branch executive and economist at the Federal Reserve Bank of Kansas City, the survey revealed that Tenth District energy activity expanded moderately but continued to lag year ago levels.

“District drilling and business activity increased in Q4, indicating some recovery from historic lows in 2020,” said Wilkerson. “However, firms are increasing output with fewer employees, and additional job cuts are expected. A significant share of firms have plans to reduce emissions moving forward, and most firms also expected higher regulatory costs in the upcoming year.”

The Kansas City Fed's quarterly Tenth District Energy Survey provides information on current and expected activity among energy firms in the Tenth District. The survey monitors oil and gas-related firms located and/or headquartered in the Tenth District, with results based on total firm activity. Survey results reveal changes in several indicators of energy activity, including drilling, capital spending, and employment. Firms also indicate projections for oil and gas prices. All results are diffusion indexes – the percentage of firms indicating increases minus the percentage of firms indicating decreases. A summary of the survey is attached. Results from past surveys and release dates for future surveys can be found at www.kansascityfed.org/surveys/energy-survey.

The Federal Reserve Bank of Kansas City serves the Tenth Federal Reserve District, encompassing the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma and Wyoming; and the northern half of New Mexico. As part of the nation’s central bank, the Bank participates in setting national monetary policy, supervising and regulating numerous commercial banks and bank holding companies, and providing financial services to depository institutions. More information is available online at www.kansascityfed.org.