Banks that actively lend to the oil and natural gas sector are upbeat about strong commodity prices and rising production activity that necessitate new and expanded exploration and drilling projects – and financing to make it happen.


Some are reporting loan growth as a result. Others look for increased lending to develop as the year wears on.

At the same time, however, bankers are cautiously monitoring fragile U.S. and global economies amid festering overseas pandemic problems, supply chain challenges and Russia’s war in Ukraine. What’s more, like the companies they lend to, banks are trying to strike a delicate balance between meeting current energy needs with swelling demands from politicians and investors to shift capital expenditures to renewable fuels.

The U.S....