Suddenly E&Ps are seeing variables that go up and not just down.

E&Ps are facing inflation, management teams expect oil prices to rise and overall the oil and gas industry saw a moderate expansion of activity to close out fourth-quarter 2021, according to a newly released survey of producers in several states including Colorado, Oklahoma, Wyoming and northern New Mexico.

Results of the survey by the Federal Reserve Bank of Kansas released Jan. 7 also show activity continued to outpace levels from a year ago.

“District drilling and business activity continued to grow through the end of 2021,” said Chad Wilkerson, Oklahoma City Branch executive and economist at the Kansa Fed. He added in the release that oil and gas companies’ revenues have risen along with higher wages and benefits for workers.

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