January 5, 2025
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Economy

US oil companies are increasing costs, despite falling prices

U.S. shale company executives plan to increase spending this year, even though they cut their forecast for oil prices in the latest survey by the Federal Reserve Bank of Dallas.”, — write: epravda.com.ua

U.S. shale company executives plan to increase spending this year, even though they cut their forecast for oil prices in the latest survey by the Federal Reserve Bank of Dallas. This is reported by Bloomberg. A majority of executives at 134 oil and gas companies across the South West expect capital spending to increase compared to 2024, according to a bank survey. But the average price of West Texas Intermediate, which companies use to plan their budgets, fell to $68 a barrel, 4% lower than in 2023. The survey is said to reflect optimism about regulating the industry after Donald Trump won the presidential election. Advertisement “The new administration should have a positive impact on the economy, thereby lifting the oil industry,” another unnamed respondent said, according to the report. The bank’s operations include Texas, northern Louisiana, and southern New Mexico. “There is more optimism in the first quarter of 2025 than in the first quarter of 2024,” another executive said in the survey.Advertisement: Read more about this: Trump plans to crash oil prices. How realistic is it and how will it affect Russia?

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