The Federal Reserve Bank of Dallas published results from its third quarter 2025 Energy Survey showing a slight decline in oil and gas activity and production, alongside continued cost increases and elevated uncertainty. Employment and hours were broadly stable, with the employment index at -1.5 (from -6.6 in second quarter 2025) and the employee hours index at -3.7 (from -5.1). Production edged lower, with the oil production index at -8.6 and the natural gas production index at -3.2. Cost pressures accelerated for operators, with the lease operating expense index rising to 36.9 (from 28.1) and the finding and development costs index increasing to 22.0 (from 11.4), while oilfield services input costs rose at a slower pace (34.8 from 40.0). The uncertainty index stood at 44.6, and 78% of exploration and development executives reported delaying investment decisions due to uncertainty about oil prices and production costs. The survey was conducted September 10–18, 2025 and received responses from 139 energy firms headquartered in the Eleventh Federal Reserve District (93 exploration and production firms and 46 oilfield services firms).
Federal Reserve Bank of Dallas 2025-09-24
Federal Reserve Bank of Dallas reports slight third quarter 2025 slowdown in oil and gas activity as costs rise and uncertainty remains elevated
The Federal Reserve Bank of Dallas' Q3 2025 Energy Survey indicates a slight decline in oil and gas activity and production, with stable employment but rising cost pressures. The lease operating expense index increased to 36.9, and the finding and development costs index rose to 22.0. Elevated uncertainty led 78% of executives to delay investment decisions.