- Oil and gas sector hit with record costs, Dallas Fed survey shows
- Among E&P companies, an index for finding and development costs jumped to an all-time high, as did a separate one for lease operating expenses
- Oilfield services also flagged similar inflationary pressures. One respondent commented, “Rising supply-chain disruption and associated inflation have the potential to delay and impact drilling and completion activity in 2022.”
- Those polled expect West Texas Intermediate to average $75/bl by the end of 2022, with responses ranging from $50-125/bbl
- The EIA reported a drawdown in inventories of 3.57-MMBbls for the week ending December 24
- U.S. crude oil inventories are about 7% below the five-year average for this time of year
- Motor gasoline and distillate fuel oil inventories also both decreased by 1.5 MMBbls and 1.7 MMBbls, respectively
- The stat marked the fourth consecutive draw in inventories