184 - Recapping what's happen over the past few weeks and Kunal Patel with Dallas Fed

Energy Week

How Institutional Investors See the Future of Oil and Gas
https://www.bcg.com/publications/2022/how-investors-see-future-of-oil-gas
- 70% of institutional investors think oil prices will stay above $60 per barrel through 2024
- Want more clarity on firms' energy transition plans
- Nearly 2/3 of institutional investors believe peak oil demand will happen by 2030 (really?! With emerging markets this cannot possibly be the case)
Hochul calls for ban on natural gas in new buildings
https://thehill.com/policy/energy-environment/588584-hochul-calls-for-ban-on-natural-gas-in-new-buildings
- wants 2 million electrified homes by the end of the decade with at least 800,000 of those homes for low and middle-income residents
Kazakhstan Unrest Pushes Up Uranium and Oil Prices
https://www.wsj.com/articles/kazakhstan-unrest-pushes-up-uranium-and-oil-prices-11641497655
- produce 40% of the uranium output that is sold to utilities in US and other Western countries and China
- Some slowdown in oil output but seems to be resolved
Biden to ramp up regulatory push on climate
https://www.argusmedia.com/en/news/2290155-biden-to-ramp-up-regulatory-push-on-climate
Dallas Fed Energy Survey
interview with Kunal Patel, Research Department, Senior Business Economist, 11th district (Texas and New Mexico)
https://www.dallasfed.org/research/surveys/des/2021/2104#tab-report
- Activity in the oil and base continues to expand, particularly the upstream sector
- Cost pressures are a big deal, cost to operate/run leases
- Employment continues to expand but not as robust as from 2010-2014
Q3 survey asked about hiring - 2/3 of firms said they are having trouble because of lack of applicants. Other reason was that potential applicants looking for higher pay.
- Outlook continues to improve
- Uncertainties continue as well - regulatory a big piece of it. Covid 19, getting additional capital,
- Oil and gas execs expect price to end up at $75 per barrel
- More wells being developed on pads, larger pads, fewer rigs needed. More wells/rig being completed.
- OPEC NOT cited as a reason for uncertainty anymore. Perhaps feeling more confident about OPEC
- Large firms listed #1 priority as pay down debt (responsible for 80% of production) Small firms (under 10,000 bpd) #1 priority to increase production.
Q1 Survey release will be March 23, 2022
- what breakeven price do E&P firms need.
Oil Price And Production Insights For 2022 From Dallas Fed Energy Survey
https://www.investing.com/analysis/3-oil-price-and-production-insights-for-2022-from-dallas-fed-energy-survey-200613820
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