Average oil and natural gas prices of $73/bbl and $4.27/MMBtu, respectively, were needed to justify substantially more drilling during the fourth quarter of 2021, according to a survey of Midcontinent and Rockies energy firms by the Federal Reserve Bank of Kansas City.

That translates into the highest “substantial increase price” average recorded for oil since 2Q2015 and the highest ever substantial increase price for gas since 2015, the Kansas City Fed noted.

“District drilling and business activity continued to grow through the end of 2021,” said Chad Wilkerson, economist with the Kansas City Fed’s Oklahoma City branch.

The Kansas City Fed asks Midcontinent and Rockies firms every other quarter about oil and gas prices needed for drilling to increase...