Rising oil prices boost US drilling, producer costs rise -Dallas Fed

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Rising oil prices boost US drilling, producer costs rise -Dallas Fed
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HOUSTON, Sept 27 - Oil and gas activity in three key energy producing U.S. states has been rising with the latest jump in energy prices, according to a survey released on Wednesday, signaling a turn in producers' sentiment even as their costs have risen too.

The results of a mid-September poll of executives with 147 energy firms in Texas, Louisiana and New Mexico found that cost inflation remains a factor but rising oil prices may finally be encouraging more drilling. The bank's index of oil and gas production activity climbed to 26.5 in the third quarter, from 8.0 in the second quarter. Its gas production index also rose to 15.4, from 2.1 the prior period.

The poll, taken in mid-September at a time when U.S. oil futures were trading about $90 per barrel, had more than two-thirds of those polled projecting the year-end price of oil will be between $85 and $100 per barrel.

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