The U.S. Gulf Coast is seeing"robust activity" in expansions of oil refineries, natural gas and chemical plants and low-carbon and green energy projects even as drilling activity in other parts of the country has been slowing, according to the latest business survey by the U.S. Federal Reserve released on Wednesday.
The bank's report, which provides a snapshot of overall business conditions over the period, found that U.S. economic activity rose modestly in July and August, with consumer spending on tourism stronger than anticipated in what could be a final surge of post-pandemic demand.The survey found energy activity was largely unchanged in the final weeks of summer, with the bank branches in Minneapolis, Kansas and Dallas all reporting drilling activity either slowing or unchanged.
While the number of active oil and gas drilling rigs has been falling steadily through the summer, most contacts polled said they expect the rig count will soon stabilize, the bank said.