U.S. oil and gas executives' outlook turned negative for the first time since the low point of the last oil bust, according to results of a survey released on Jan. 3 by the Federal Reserve Bank of Dallas.
A survey of executive sentiment fell to -10 from 47 in the prior quarter, the first negative reading since early 2016, when U.S. crude prices plummeted to $26 per barrel.
More than half of executives said they expect lower capital spending in 2019.
Still, executives are predicting the U.S. crude will end the year trading around $60 per barrel—a 30% increase over current prices.
Responses ranged from $50 to $64.99 per barrel, according to the survey conducted Dec. 12-20. Only 9% of executives said they were planning for a per barrel price below $50 for the year.
The U.S. benchmark West Texas Intermediate crude was trading around $46.61 on the morning of Jan. 3.
Daniel Rice, former CEO of Rice Energy who now sits on the EQT board, addressed the elephant in the room earlier this month at Hart Energy’s Energy Capital Conference.
Most of EOG Resources's activity this year will be in the Eagle Ford Shale and the Permian's Delaware Basin, a company executive said, adding it could reduce some plans if necessary.
EagleClaw in 2018 acquired natural gas pipeline operator Caprock Midstream Holdings from Energy Spectrum Capital and Caprock Midstream Management for $950 million.