"New data on Wednesday from the Dallas Fed Energy Survey, which polled oil and gas executives at 139 firms across Texas, northern Louisiana and southern New Mexico in mid-September, shows oil and gas activity slipped again in the third quarter of 2025, weighed down by soaring costs, policy uncertainty, and the chaos of new tariffs. The survey's broadest measure of business conditions, the business activity index, came in at -6.5, marking the second consecutive quarter of contraction."
"Oilfield services firms reported their margins are still deeply negative, with one describing the sector as "bleeding." The tariffs are cutting deep: operators said higher costs for tubular steel, heavy material, and imported components are making wells uneconomic. "Tariffs continue to increase the cost of production. We are suffering from a combination of increased cost due to tariffs and downward pricing pressure from end users," one services executive said."
Dallas Fed Energy Survey of 139 oil and gas firms across Texas, northern Louisiana and southern New Mexico recorded a decline in activity in Q3 2025. The business activity index was -6.5, marking a second consecutive quarter of contraction, and the company outlook index plunged to -17.6. More than 44% of firms reported elevated uncertainty. Production of oil and natural gas ticked lower while costs for drilling, equipment leasing, finding and development, and lease operating expenses surged. Tariffs on steel, aluminum and imported components sharply increased input costs, making some wells uneconomic and squeezing services margins.
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