Despite some pressure from high drilling costs, oil and gas executives surveyed by the Federal Reserve Bank of Kansas expressed optimism on U.S. natural gas prices and future drilling activity, forecasting both would rise over the next six to 24 months. 

The Kansas City Fed conducts quarterly surveys to gauge current and expected drilling activity in the Tenth Federal Reserve District, as well as expectations for natural gas and oil prices. The district includes Colorado, Kansas, Nebraska, Oklahoma and Wyoming, as well as 43 counties in western Missouri and 14 counties in northern New Mexico. The survey also tracks indicators of energy activity including capital spending and employment. 

Respondents were asked about expectations for natural gas...