Executives from oil and fuel corporations have revealed the place they count on the West Texas Intermediate (WTI) crude oil worth to be at numerous factors sooner or later as a part of the primary quarter Dallas Fed Vitality Survey, which was launched final week.
The survey requested contributors the place they count on WTI costs to be in six months, one yr, two years, and 5 years. Executives from 124 oil and fuel corporations answered this query and gave a imply response of $68 per barrel for the six month mark, $70 per barrel for the yr mark, $74 per barrel for the 2 yr mark, and $82 per barrel for the 5 yr mark, the survey confirmed.
Executives from 124 oil and fuel corporations additionally answered this query within the fourth quarter Dallas Fed Vitality Survey and gave a imply response of $69 per barrel for the six month mark, $71 per barrel for the yr mark, $74 per barrel for the 2 yr mark, and $80 per barrel for the 5 yr mark, that survey confirmed.
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The typical response executives from 129 oil and fuel corporations gave once they had been requested within the newest survey what they count on the WTI crude oil worth to be on the finish of 2025 was $68.32 per barrel, this survey outlined. The low forecast got here in at $50 per barrel, the excessive forecast was $100 per barrel, and the spot worth throughout the survey was $67.60 per barrel, the survey identified.
The typical response executives from 131 oil and fuel corporations gave when requested within the earlier Dallas Fed Vitality Survey what they count on the WTI crude oil worth to be on the finish of 2025 was $71.13 per barrel, that survey confirmed. The low forecast got here in at $53 per barrel, the excessive forecast was $100 per barrel, and the spot worth throughout the survey was $70.66 per barrel, that survey highlighted.
The primary quarter 2025 Dallas Fed Vitality Survey additionally requested contributors, within the prime two areas during which their agency is lively, what WTI worth does their agency must cowl working bills for current wells. Executives from 83 exploration and manufacturing corporations answered this query and gave a imply response of $26 per barrel for the Eagle Ford, $33 per barrel for the Permian (Delaware), $35 per barrel for the Permian (Midland), $41 per barrel for Different U.S. (Shale), $45 per barrel for Different U.S. (non-shale), and $45 per barrel for Permian (Different), the survey confirmed.
“The typical worth throughout the whole pattern is roughly $41 per barrel, up from $39 final yr,” the most recent Dallas Fed Vitality Survey acknowledged.
“Throughout areas, the typical worth essential to cowl working bills ranges from $26 to $45 per barrel. Nearly all respondents can cowl working bills for current wells at present costs,” it added.
“Massive corporations (with crude oil manufacturing of 10,000 barrels per day or extra as of fourth quarter 2024) require costs of $31 per barrel to cowl working bills for current wells, based mostly on the typical of firm responses. That compares with $44 for small corporations (fewer than 10,000 barrels per day),” it continued.
The most recent Dallas Fed Vitality Survey went on to ask contributors, within the prime two areas during which their agency is lively, what WTI worth does their agency must profitably drill a brand new nicely. Executives from 81 exploration and manufacturing corporations answered this query and gave a imply response of $61 per barre for the Permian (Midland), $62 per barrel for the Eagle Ford and the Permian (Delaware), $63 per barrel for Different U.S. (Shale), $66 per barrel for Different U.S. (Non-shale), and $70 per barrel for Permian (Different), the survey revealed.
“For the whole pattern, corporations want $65 per barrel on common to profitably drill, larger than the $64 per barrel worth when this query was requested in final yr’s first-quarter survey,” the most recent Dallas Fed Vitality Survey acknowledged.
“Throughout areas, common breakeven costs to profitably drill vary from $61 to $70 per barrel. Breakeven costs within the Permian Basin common $65 per barrel, unchanged from final yr,” it added.
“Massive corporations (with crude oil manufacturing of 10,000 barrels per day or extra as of fourth quarter 2024) require a $61 per barrel worth to profitably drill, based mostly on the typical of firm responses. That in contrast with $66 for small corporations (fewer than 10,000 barrels per day),” it went on to state.
The Dallas Fed conducts the Dallas Fed Vitality Survey quarterly to acquire a well timed evaluation of power exercise amongst oil and fuel corporations situated or headquartered within the Eleventh District, the Dallas Fed Vitality Survey states.
The Federal Reserve Financial institution of Dallas is a part of the Federal Reserve System, the central financial institution of the USA, the Dallas Fed website highlights.
To contact the writer, e mail andreas.exarheas@rigzone.com
