Dallas Fed: Regional oil activity declines but electrification gains.

The Federal Reserve Bank of Dallas reported on Wednesday that oil and gas activity in Texas and Louisiana, as well as New Mexico, decreased in the third quarter.

According to executives surveyed, third-quarter oil and natural gas production is mixed. Data suggests that oil production has increased, while gas production has decreased.

A fifth of oil executives have said that they have converted their drilling rigs to electric power and are using hydraulic fracturing to reduce pollution. Six percent of oil and gas executives said they plan to electrify production.

The electrification of oil drilling is a solution that has been adopted by major oil producers who want to reduce the emissions.

The survey covered 136 companies, 91 of which were exploration and production companies and 45 oilfield service firms. It was conducted from September 11 to 19. According to the survey, the Dallas Fed's Employment Index was positive for 15 consecutive quarters, but the result in the single digits suggested that there had been little or no hiring.

The survey found that costs for E&P companies and oilfield services firms both increased, but at a slower rate than the second quarter.

(source: Reuters)