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Operators Cite Investor Pressure for Production Growth Restraint

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   |    Thursday,March 24,2022

The latest survey by the Dallas Fed has unveiled that most E&P companies cite investor pressure as the primary reason for meager production growth.

60% of Execs Cite Investor Pressure for Low Production Gains

Per the survey, nearly 60% of executives stated that investor pressure to maintain capital discipline is the primary reason that publicly traded oil producers are restraining growth despite high oil prices.

The next highest reason cited was "other", with 15%.

  • For respondents who said “other,” the primary reasons were personnel shortages, limited availability of equipment and supply-chain issues. An additional reason cited was uncertainty regarding future oil prices and whether they would stay high.

Oil Price Needed for Growth

Just over 40% percent of executives believe the WTI crude oil price necessary to get publicly traded U.S. producers back into growth mode is between $80 and $99 per barrel.

Approximately 29%, believe the shift to growth mode will not be dependent on the price of oil.


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