US crude oil production grew much faster in the first quarter, but so did costs, said the Dallas Federal Reserve. Nevertheless, price sentiment was optimistic as the majority of survey respondents expect that by the end of 2022, WTI would cost between $80 and $90 per barrel. A minority of those surveyed, which was approximately 5%, assumed that by the end of 2022 WTI would cost between $110 and $120. Interestingly, most of the respondents believed that the benchmark price in the US would stop at more than $120 per barrel.

Another result from the survey is that about 41% believe that the price of WTI, which is in the range of $80 to $100, is enough for more producers to ramp up output. Although the Dallas Fed's own data confirms this, the US government says production is not growing fast enough.

However, about 30% respondents said production plans do not depend on oil prices. 59% explained that the main reason for limited production was pressure from investors to maintain capital.

Respondents also cited labor shortages, limited availability of equipment, disruptions in the supply chain, and social, environmental and governance concerns as other reasons to be wary of production growth.

According to the Dallas Fed's latest data, crude oil production jumped to 45 in the first quarter of 2022, from 19.1 in the fourth quarter of 2021. The natural gas production index, meanwhile, jumped from 14 to 40 in the same period.

Costs also rose to a record high of 77.1, from 69.8 in the fourth quarter of 2021. The Dallas Fed said the cost of oilfield services has been rising for five consecutive quarters.