Activity in the oil and gas sector declined modestly in third quarter 2020, according to oil and gas executives responding to the Dallas Fed Energy Survey. The business activity index—the survey’s broadest measure of conditions facing Eleventh District energy firms—remained in negative territory but improved from -66.1 in the second quarter to -6.6 in the third quarter, suggesting that the pace of the contraction has significantly lessened.
Production indexes rose significantly but remained negative, suggesting a moderation in production declines. According to exploration and production executives, the oil production index rose from -62.6 in the second quarter to -15.4 in the third. The natural gas production index increased 38 points to -10.1.