Oil and gas executives have grown increasingly pessimistic about the outlook of their companies and more uncertain about the future, according to a regional survey released Wednesday by the Federal Reserve Bank of Dallas.
Respondents to the Dallas Fed’s third-quarter energy questions pointed to concerns about changes to energy policy under President Donald Trump, market volatility and increased drilling tied to tariffs. Benchmark U.S. oil was trading for around $65 a barrel Wednesday, a price considered to be relatively low as the industry taps complex underground formations.
“We have begun the twilight of shale,” wrote one executive with an exploration and production company, noting job cuts and consolidation in the energy sector. “The U.S. isn’t running out of oil, but she sure is running out of $60 per barrel oil. $100 per barrel? $150 per barrel? Price likely must cover for less-than-optimal geology over time.”
The Dallas Fed does not name executives that provide comments so they can speak more freely. The survey used data from 139 energy firms across Texas, southern New Mexico and northern Louisiana.
