The Federal Reserve Bank of Dallas published its Energy Survey showing oil and gas activity in the Eleventh District increased sharply in the second quarter of 2026. The business activity index, the survey’s broadest measure of conditions facing energy firms, rose to 46.1 from 21.0 in the first quarter, its highest reading since the second quarter of 2022. Oil production increased modestly and natural gas production changed little, while oilfield services firms reported stronger operating margins, equipment utilization and prices received for services. The pickup in activity was accompanied by broad cost and supply pressures. The input cost index for oilfield services firms climbed to 64.4 from 34.9, with no respondents reporting lower costs, while finding and development costs and lease operating expenses also rose. Capital spending strengthened, with the capital expenditures index increasing to 40.9 and 49 percent of firms reporting higher spending, but the index for expected capital expenditures next year was zero, pointing to more cautious longer-term plans. Delivery times also lengthened, with the supplier delivery time index rising to 31.7. Special questions pointed to only modest U.S. crude oil production growth in 2027 even if oil prices reached USD 100, USD 125 or USD 150 per barrel, with the most common expectation being growth of more than 0.25 million but not more than 0.50 million barrels per day. Among Permian-focused operators, natural gas takeaway capacity and policy or regulatory issues were the most frequently cited constraints on drilling over the next 12 months, although most expected Permian gas takeaway constraints to be fully resolved sometime in 2027. On Iran, about two-thirds of respondents said WTI crude oil would peak at USD 125 per barrel or less if the conflict continued through year-end, and responses on when the conflict would end shifted after the United States and Iran reached a memorandum of understanding during the survey period.
Federal Reserve Bank of Dallas2026-06-24
Federal Reserve Bank of Dallas survey shows second quarter energy activity at strongest pace since 2022 as costs surge
The Federal Reserve Bank of Dallas said its second quarter 2026 Energy Survey showed Eleventh District oil and gas activity rising at its fastest pace since the second quarter of 2022. Production gains were modest, but costs, delivery times and capital spending all increased sharply. Executives also pointed to only modest U.S. production growth potential in 2027 and cited gas takeaway capacity and regulatory issues as key Permian constraints.