popular articles

United States: Lower Fossil Fuel Production in the Midwest

Oil and gas production in the U.S. Rockies and Midwest declined in the second quarter of 2024, but a recovery is expected in the next six months, according to the Federal Reserve Bank of Kansas City.
Déclin de l'activité énergétique

Please share:

The Federal Reserve Bank of Kansas City recently released its quarterly energy survey, revealing a decline in oil and gas activity in the Rocky Mountain and Midwest regions of the U.S. during the second quarter of 2024. This survey covers drilling companies in the states of Kansas, Colorado, Nebraska, Oklahoma and the northern part of New Mexico.
According to the survey, companies operating in these regions make an average profit at an oil price of $64 a barrel, but need prices to reach $91 a barrel to substantially increase drilling. Currently, West Texas Intermediate futures are trading around $82.50 a barrel, highlighting the challenge of maintaining profitable drilling activity.

Gas Price Challenges

Natural gas prices, meanwhile, need to reach $3.47 per million British thermal units (mmBtu) to make drilling profitable, and $4.68 per mmBtu to increase activity, according to survey participants. At present, Henry Hub futures are trading at around $2.334 per mmBtu, a historically low level that is prompting some companies to cut production. One survey respondent stated that “gas prices in the Rockies are so low that we have to shut down production.”

Regulations and the Economy: The Main Risks

Among survey respondents, 43% identified increasing regulations as the most important risk for their companies in the coming year. Meanwhile, 29% identified the slowdown in economic activity as the biggest threat, while 25% cited OPEC+ production decisions as the main risk.
The impact of OPEC+ decisions is particularly felt in these regions, where fluctuations in world oil and gas prices directly influence the profitability of local companies. The combination of these factors creates an uncertain environment for energy producers.

Prospects for recovery

Despite the current downturn, a recovery is expected in the next six months. Analysts predict increased energy demand and improved prices, which could boost drilling activity. However, this recovery will depend heavily on regulatory developments and global economic conditions.
The resilience of the region’s businesses will be crucial in meeting these challenges. With the right strategies, some could not only survive this difficult period, but also emerge stronger in a rapidly changing market.
In short, the oil and gas industry in the Rocky Mountains and the American Midwest faces significant challenges, but remains hopeful of a recovery in the near future. Future economic dynamics and political decisions will play a key role in determining this trajectory.

Register free of charge for uninterrupted access.

Publicite

Recently published in

French electricity exports generated a record €5 billion in 2024, driven by increased volumes despite falling market prices. Italy, Germany, and Belgium are among the main importers.
France’s electricity exports generated €5 billion in 2024, an unprecedented level driven by increased volumes despite declining market prices. Italy, Germany, and Belgium were among the main importers.
France’s electricity exports generated €5 billion in 2024, an unprecedented level driven by increased volumes despite declining market prices. Italy, Germany, and Belgium were among the main importers.
Engie announces an exceptional increase of €50 for energy vouchers benefiting eligible customers and doubles its contribution to the Housing Solidarity Fund (FSL). This measure comes as rising electricity taxes impact consumers.
Engie announces an exceptional increase of €50 for energy vouchers benefiting eligible customers and doubles its contribution to the Housing Solidarity Fund (FSL). This measure comes as rising electricity taxes impact consumers.
La Lituanie, la Lettonie et l'Estonie vont couper leurs derniers liens avec le réseau électrique russe. Ce basculement, prévu le 8 février, marque leur intégration complète au réseau européen après des années de préparation et d'investissements.
La Lituanie, la Lettonie et l'Estonie vont couper leurs derniers liens avec le réseau électrique russe. Ce basculement, prévu le 8 février, marque leur intégration complète au réseau européen après des années de préparation et d'investissements.
Indonesia must manage ambitious climate commitments while maintaining energy stability. The Just Energy Transition Partnership (JETP), aimed at mobilizing $20 billion, faces financial obstacles and uncertainties regarding international funding.
The recent changes in U.S. tariff policies could affect the global energy industry, particularly trade in key products such as natural gas and renewable energy equipment.
The recent changes in U.S. tariff policies could affect the global energy industry, particularly trade in key products such as natural gas and renewable energy equipment.
The Vietnamese government is adjusting its timeline for the implementation of its carbon market. Initially planned for 2028, the official launch will now take place in 2029 after a three-year pilot phase. This delay aims to strengthen the regulatory and technical framework.
The Vietnamese government is adjusting its timeline for the implementation of its carbon market. Initially planned for 2028, the official launch will now take place in 2029 after a three-year pilot phase. This delay aims to strengthen the regulatory and technical framework.
The European Union launches an emergency consultation with automakers to accelerate the transition to electrification in response to current competitive and regulatory challenges.
The European Union launches an emergency consultation with automakers to accelerate the transition to electrification in response to current competitive and regulatory challenges.
The BloombergNEF 2024 report reveals a historic record of global investments in the low-carbon energy transition, driven by electrified transport, renewable energy, and power grids.
The High Council for Climate (HCC) presents six conditions for the energy transition. The opinion outlines areas to strengthen, particularly regarding budget mobilization and planning for the phase-out of fossil fuels.
The High Council for Climate (HCC) presents six conditions for the energy transition. The opinion outlines areas to strengthen, particularly regarding budget mobilization and planning for the phase-out of fossil fuels.
At the heart of the vast northern expanses, Sami communities see their ancestral ways of life challenged by the rise of renewable projects. A factual narrative revealing the tensions between economic modernization and the preservation of millennia-old traditions.
At the heart of the vast northern expanses, Sami communities see their ancestral ways of life challenged by the rise of renewable projects. A factual narrative revealing the tensions between economic modernization and the preservation of millennia-old traditions.
The 15% tariff reduction affects over 24 million subscribers in France, with disparities depending on regulated and market offers, amid fluctuations in energy costs, taxes, and transmission fees.
The 15% tariff reduction affects over 24 million subscribers in France, with disparities depending on regulated and market offers, amid fluctuations in energy costs, taxes, and transmission fees.
Myanmar faces recurrent power outages linked to civil conflict and outdated infrastructure, affecting daily life and economic activities.
The Greenfin label, launched in 2013, is being updated to better match European requirements, particularly in sustainable finance and climate objectives. The revisions published on January 29, 2025, strengthen its alignment with the green taxonomy and European standards.
The Greenfin label, launched in 2013, is being updated to better match European requirements, particularly in sustainable finance and climate objectives. The revisions published on January 29, 2025, strengthen its alignment with the green taxonomy and European standards.
The US Senate has approved the nomination of Lee Zeldin to lead the EPA. The choice made by Donald Trump has been praised by fossil fuel industry players but criticized by environmental NGOs.
The US Senate has approved the nomination of Lee Zeldin to lead the EPA. The choice made by Donald Trump has been praised by fossil fuel industry players but criticized by environmental NGOs.
Sylvain Waserman, CEO of Ademe, reaffirmed the importance of the ecological transition agency during his testimony before the Committee on Sustainable Development, highlighting its key role in reducing France’s energy dependence.
Sylvain Waserman, CEO of Ademe, reaffirmed the importance of the ecological transition agency during his testimony before the Committee on Sustainable Development, highlighting its key role in reducing France’s energy dependence.
The Norwegian Sovereign Fund posted a historic return of 214 billion euros in 2024, driven by investments in major tech companies. However, the dominance of these giants is now being questioned.
In response to geopolitical and economic challenges, the European Union is realigning its energy policy to enhance its competitiveness. Regulatory simplifications and efforts to secure energy supplies are at the heart of the new strategy, while maintaining environmental commitments.
In response to geopolitical and economic challenges, the European Union is realigning its energy policy to enhance its competitiveness. Regulatory simplifications and efforts to secure energy supplies are at the heart of the new strategy, while maintaining environmental commitments.
The Constitutional Council censored a retroactive measure aimed at modifying contracts between EDF and renewable energy producers, citing a disproportionate infringement on contractual rights.
The Constitutional Council censored a retroactive measure aimed at modifying contracts between EDF and renewable energy producers, citing a disproportionate infringement on contractual rights.
The Zambia-Tanzania Interconnector (ZTIP) project, backed by international financing, aims to strengthen electrical exchanges between Zambia and Tanzania, with major implications for energy integration in sub-Saharan Africa.
The Zambia-Tanzania Interconnector (ZTIP) project, backed by international financing, aims to strengthen electrical exchanges between Zambia and Tanzania, with major implications for energy integration in sub-Saharan Africa.
The U.S. Department of Energy grants Pacific Gas and Electric a loan to modernize infrastructure, integrate more renewables, and improve grid reliability.
As the United States considers another withdrawal from the Paris Agreement, major economic powers organize to maintain leadership in a rapidly transforming energy sector.
As the United States considers another withdrawal from the Paris Agreement, major economic powers organize to maintain leadership in a rapidly transforming energy sector.
Zhecho Stankov, Bulgaria's new Minister of Energy, emphasizes energy security and supply diversification while aligning with European goals for sustainable transition.
Zhecho Stankov, Bulgaria's new Minister of Energy, emphasizes energy security and supply diversification while aligning with European goals for sustainable transition.
The Indonesian government’s plan to convert 20 million hectares of forests for food and energy sparks criticism from NGOs, which warn of irreversible environmental consequences.
The Indonesian government’s plan to convert 20 million hectares of forests for food and energy sparks criticism from NGOs, which warn of irreversible environmental consequences.

Advertising