The Federal Reserve Bank of Dallas surveyed over 130 oil and gas producers, revealing a pessimistic outlook for the industry in June. Nearly half of responding firms forecasted fewer wells than previously expected, attributing this to rising tariffs on steel imports. Three-quarters of participants noted increased costs for drilling and completing new wells due to these tariffs, significantly affecting profitability. Major corporations like ExxonMobil and BP reported anticipated decreases in their profits due to weaker oil prices, despite regulatory support from the current administration over the oil and gas sector.
Nearly half of the 38 firms that responded to the industry survey saw their firms drilling fewer wells this year than they had earlier expected.
Survey participants indicated that about one in three respondents attributed the expectations for fewer wells to higher tariffs on steel imports.
Three in four survey respondents noted that tariffs raised the cost of drilling and completing new wells, adversely affecting profits.
ExxonMobil projected a profit drop of roughly $1.5 billion for the April-June quarter due to weaker oil and gas prices.
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