Tenth District Energy Activity Fell Sharply:

FOR IMMEDIATE RELEASE

Jan. 09, 2025

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KANSAS CITY, Mo. - The Federal Reserve Bank of Kansas City released the fourth quarter Energy Survey today. According to Cortney Cowley, assistant vice president and Oklahoma City Branch executive at the Federal Reserve Bank of Kansas City, Tenth District energy activity fell sharply, with further contraction expected in the next six months.

"Tenth District drilling and business activity decreased to its lowest level since 2020," said Cowley. "One reason for these declines was that WTI oil prices fell below District firms' average profitable price of $61 per barrel in Q4 2025. Moving forward, the outlook for investment in 2026 is mixed, with similar shares of firms planning to increase investment, decrease investment, or leave it unchanged."

The Kansas City Fed's quarterly Tenth District Energy Survey provides information on current and expected activity among energy firms in the Tenth District. The survey monitors oil and gas-related firms located and/or headquartered in the Tenth District, with results based on total firm activity. Survey results reveal changes in several indicators of energy activity, including drilling, capital spending, and employment. Firms also indicate projections for oil and gas prices. All results are diffusion indexes - the percentage of firms indicating increases minus the percentage of firms indicating decreases.

A summary of the survey is attached. Results from past surveys and release dates for future surveys can be found at External Linkhttps://www.kansascityfed.org/surveys/energy-survey.

The Federal Reserve Bank of Kansas City serves the Tenth Federal Reserve District, encompassing the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma and Wyoming; and the northern half of New Mexico. As part of the nation's central bank, the Bank participates in setting national monetary policy, supervising and regulating numerous commercial banks and bank holding companies, and providing financial services to depository institutions. More information is available online at External Linkwww.kansascityfed.org.
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