Despite concerns, 556 U.S. oil and gas professionals indicate increased optimism about the industry in 2nd consecutive “Pulse of the Oil Patch” survey
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AUSTIN, Texas – March 22, 2022 – One year into the Biden presidency, federal overreach is the biggest threat for U.S. oil and gas professionals. This is according to the results of the second consecutive “Pulse of the Oil Patch” survey conducted by the Texas Alliance of Energy Producers. Representing a large cross-section of the industry, 556 survey respondents in 38 states and the District of Columbia provided input about the state of business, concerns, challenges, and priorities in 2022.
“Our survey found the overriding sentiment of U.S. oil and gas professionals is ‘get out of our way,’” said Jason Modglin, President of the Texas Alliance of Energy Producers. “U.S. producers want to meet the global demand for oil and gas, alleviating concerns about gas prices at home and unstable oil markets abroad. Federal intervention and shortages of materials, labor, and capital continue to present major challenges.”
Key findings from the 2022 survey, compared to 2021, include:
Regulation Tops List of Threats:
• “Federal overregulation” supplanted the “Price of oil” as the #1 threat in 2022.
• Respondents also chose “Regulatory/legislative issues” as one of their biggest challenges of 2022 (rose to #4).
• Other top threats include “Public opinion” (a new answer choice) and “Environmental activism/overreach” (both at 25%), and COVID-19 issues (23%).
Increase in Positivity:
• 51% of respondents are “Positive” or “Very Positive” about their business outlook, up from 34% in 2021. “Neutral” responses are down: 20% versus 37% in 2021.
• “Negative” and “Very negative” responses remained the same year over year: 29%. • 52% of respondents believe the oil and gas industry will be “Much better” or “Better” one year from now (versus 44% in 2021). “Much better” garnered 22% of responses versus only 6% last year. • One person out of 556 said “Much worse,” and “Worse” stayed at 18% year over year.
“Growing the business” Is the Top Challenge AND Priority:
• “Growing the business” overtook “Maintaining the business” to become the number one challenge and priority for 2022.
• Respondents elevated “Increase production” to the #2 priority, and half indicated their companies will “Increase drilling” in 2022.
• Respondents are more concerned this year about the challenges of “Expense control” (#2) and “Project completion delays” (#3).
• Employee turnover is of increasing concern for oil and gas professionals, with nearly 17% indicating it is a challenge versus 4% in 2021.
For more details about the survey results, visit https://texasalliance.org/.
About the Survey
Exactly 556 oil and gas professionals responded to a web-based survey between Jan. 17 and Feb. 14, 2022. Responses were solicited via social media and direct e-mails from Alliance and third-party databases. The survey respondents represent a broad spectrum of the U.S. oil and gas industry across 38 states and the District of Columbia:
• Independent producers (22%), energy service companies (17%), and professional services firms (14%) make up the majority. Water recyclers, midstream (pipelines), and major producers represent about 10% each.
• Texas represents 25% of the respondents while Pennsylvania comprises about 10%. All other states and Washington, D.C. represent 5% or less each.
• Executives, operations personnel, and geologists top the list of roles.
• 55% report their companies have between 51-250 employees while 28% have between 251-1,000 employees.
About Texas Alliance of Energy Producers
The Texas Alliance of Energy Producers is the most knowledgeable and effective statewide oil and gas association in the nation. Serving more than 3,000 members, the Alliance provides a voice for sound U.S. energy policy. These individuals and organizations – from small independents to publicly traded companies – are the driving force behind the U.S. energy renaissance. Founded in 1930, the Alliance celebrates its 91st anniversary this year. For more information, visit https://www.texasalliance.org/ and @TexasAllianceEP.