The average natural gas price that energy firms across the Midcontinent and Rockies needed to justify substantially more drilling increased 40% sequentially in the second quarter, according to a survey by the Federal Reserve Bank of Kansas City.

Kansas City Fed

The Kansas City Fed, as it is better known, said the 2Q2022 energy survey pegged the growth-inducing Henry Hub natural gas price at $6.34/MMBtu, up sharply from $4.53 in 1Q2022 and $4.27 in 4Q2021.

Energy firms surveyed in the Kansas City Fed’s Tenth District between June 15 and June 30  reported a relatively modest 14% quarter/quarter increase in the West Texas Intermediate (WTI) oil price needed to drill more, from $86/bbl in 1Q2022 to $98 in 2Q2022. In 4Q2021 the average WTI price to trigger more Tenth District activity was 34%...