Given the current conflict between Russia and Ukraine, sanctions imposed by the U.S., and the amount of global oil supply coming out of Russia, the U.S. has an opportunity to increase production and provide supply. This week’s chart of the week shows a survey response of oil and gas executives from the Dallas Federal Reserve, and asks what the primary reason is that oil producers are restraining growth. With 59% percent responding “Investor Pressure to Maintain Capital Discipline”, either oil executives are not confident oil prices will remain high, or that adjustments to increase productions have already been made.
Source: Dallas Federal Reserve