Over the coming months, leaders in the oil and gas industry anticipate a minor improvement in the industry. The most recent energy report from the Dallas Federal Reserve Bank points to a peaceful but uncertain future.
The fourth quarter of 2024 saw a favorable swing in the Dallas Fed’s company outlook index, indicating that businesses had a somewhat more optimistic perspective for the future.
According to Michael Plante, senior research economist at the Dallas Fed, “the oil and gas sector is entering 2025 on a relatively quiet note, with business activity growing slightly compared to last quarter,”
According to the poll, fourth-quarter oil and gas production was mixed. Although there was minimal new hiring, employment remained positive. The survey participants generally projected that the price of West Texas Intermediate crude will close to its current level at $71 per barrel by the end of 2025.
134 energy companies responded to the Dallas Fed’s survey, including 47 oilfield services companies and 87 exploration and production (E&P) companies.
Businesses that provide oilfield services reported some waning, with equipment utilization declining. The situation was a little worse for E&P enterprises.
“About half of large E&P companies responded that they expect their capital spending to decrease in 2025,” Plante stated. “This is going to weigh on overall capital spending for the industry given the relative size and importance of these companies for spending and production.”
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