By Liz Hampton

(Reuters) – The Federal Reserve Bank of Dallas released Wednesday’s survey of executives on oil, revealing that activity in the sector accelerated during the first quarter. This was in line with improved company outlooks.

The average price of a barrel of crude oil will reach $93/barrel by the end, while prices at the U.S. largest hub will average $4.57/million British thermal units (mmBtu) according to an analysis of executives from Texas and Louisiana.

According to the survey, 56 points were recorded in an index measuring activity of oil-and gas companies within the region, up from 42.6 during the fourth quarter. It was the highest figure since six years ago when it began.

However, they expressed concern that the “unprecedented supply chain” and labor shortages are hampering their ability to increase output and hire more people despite high oil prices.

After Russia’s February 24th invasion of Ukraine, and the subsequent sanctions against its oil exports, oil prices have reached their highest levels in more than a decade. Russia refers to its military operation as a “special operations.”

Over $114 per barrel was traded on Wednesday by the U.S. West Texas Intermediate benchmark, an increase of more than half compared to the start.

Nearly all the companies providing oilfield services were concerned about rising costs. Some also claimed that there are still labor shortages. One claimed that it had available rigs but couldn’t find employees.

According to one person, the supply-chain and material shortages are “unprecedented” adding that, “We face serious workforce problems because significant numbers of workers have left the sector during downturn and as a result of the ridicule of oil and gas.”

Respondents reported that an average oil price of $34 a barrel was required to cover operating costs for an existing drill well. That’s roughly 10% higher than last year. In order to make it profitable to drill new wells, the average oil price was $56 per barrel. That’s an improvement of about 10% over last year. Nearly 60% said shareholders’ pressures to boost returns are the major reason for public companies not increasing their production.

The survey revealed that 15% of the large companies surveyed stated they plan to grow their business by over 30% in 2013, while only 23% of small firms expect this level of growth.

Mid-March saw the survey include 141 oil companies, of which 91 were production and exploration companies, and 50 were service oilfield firms.