U.S. Oil Industry Warns Of Sharply Higher Costs

The U.S. oil industry is facing a sharp increase in production costs, the Dallas Fed energy survey’s latest edition has revealed. The survey found that while activity in the oil patch continued to recover during the fourth quarter and production rose faster, costs also rose, for the third quarter in a row, and they rose sharply. According to the Dallas Fed index, the reading for oil production in the period rose to 19.1 from 10.7 in the third quarter, but the cost input reading also rose, to 69.8 from 60.8 in the third quarter. The fourth-quarter reading is a record high.