Executives from oil and gas firms have revealed where they expect the West Texas Intermediate (WTI) crude oil price to be at various points in the future as part of the fourth quarter Dallas Fed Energy Survey, which was released recently.
The average response executives from 131 oil and gas firms gave when asked what they expect the WTI crude oil price to be at the end of 2025 was $71.13 per barrel, the survey showed. The low forecast came in at $53 per barrel, the high forecast was $100 per barrel, and the spot price during the survey was $70.66 per barrel, the survey pointed out.
This question was not asked in the previous Dallas Fed Energy Survey, which was released in the third quarter. That survey asked participants what they expect the WTI crude oil price to be at the end of 2024. Executives from 134 oil and gas firms answered this question, offering an average response of $72.66 per barrel, that survey showed.
The latest Dallas Fed Energy Survey also asked participants where they expect WTI prices to be in six months, one year, two years, and five years. Executives from 124 oil and gas firms answered this question and gave a mean response of $69 per barrel for the six month mark, $71 per barrel for the year mark, $74 per barrel for the two year mark, and $80 per barrel for the five year mark, the survey showed.
Executives from 119 oil and gas firms answered this question in the third quarter Dallas Fed Energy Survey and gave a mean response of $73 per barrel for the six month mark, $76 per barrel for the year mark, $81 per barrel for the two year mark, and $87 per barrel for the five year mark, that survey showed.
The oil price was highlighted several times in a ‘comments’ section of the fourth quarter Dallas Fed Energy Survey, which the survey outlined showed comments from respondents’ completed surveys that had been edited for publication.
“It appears that crude oil prices are headed down,” one exploration and production firm stated, the survey showed.
“Production for our firm has decreased with increased costs to remediate production issues with the prospect of lower crude oil prices,” another exploration and production company said, the survey highlighted.
According to the survey, one oil and gas support services firm said, “as always, international politics play havoc with the price of oil … For now, oil seems to be stable, but that could change at any time”.
Another oil and gas support services company said, “‘drill, baby, drill’ will not be positive for the oilfield services space if WTI drops below $65 per barrel for a substantial period”, the survey showed.
Rigzone has contacted the Trump transition team for comment on this statement. At the time of writing, the Trump camp has not yet responded to Rigzone.
In its latest short term energy outlook (STEO), which was released last month, the U.S. Energy Information Administration (EIA) lowered its WTI spot price forecast for 2025.
According to its December STEO, the EIA now sees the WTI spot price averaging $69.12 per barrel in 2025. The EIA’s previous STEO, which was released in November, projected that the WTI spot price would average $71.60 per barrel in 2025. The EIA’s next STEO is scheduled to be released on January 14.
The Dallas Fed conducts a quarterly survey of about 200 oil and gas firms located or headquartered in the Eleventh District – Texas, southern New Mexico, and northern Louisiana – which operate regionally, nationally, or internationally, the Federal Reserve Bank of Dallas website states on a page about the Dallas Fed Energy Survey.
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