Fed survey: Regional energy activity still slow

Energy firm activity in Kansas and six other states stabilized slightly but continued to be slow in the second quarter of 2015, according to a news release from the Federal Reserve Bank of Kansas City.

Federal Reserve spokesman Chad Wilkerson stated in the release that “conditions in the energy sector weakened further in the second quarter,” though he added that expectations also stabilized, according to the Fed’s 10th district energy survey report, which spotlights an area that encompasses Kansas, western Missouri, Colorado, Nebraska, Oklahoma, Wyoming and part of New Mexico.

“Firms on average said an oil price of $73 per barrel would be needed for a substantial increase in activity to occur,” Wilkerson said. “They expected prices to stay below that level through 2016.”

On average, firms expect West Texas Intermediate oil prices to be at around $63 per barrel by the end of the year, according to the report. Officials from firms surveyed indicated that they believed a combination of slowing U.S. production, increasing global demand and the stabilization of the dollar were the main driving factors of an increase in oil prices during the second quarter.

This story was originally published July 10, 2015 at 5:22 PM with the headline "Fed survey: Regional energy activity still slow."