In the latest Dallas Fed Energy Survey, which was released recently, several exploration and production executives expressed frustration towards the White House.
“The White House seems to prefer commotion and chaos to delivering meaningful, truthful information that serious business decisions can be made on,” one exploration and production company executive said in a survey respondents comments section.
“Markets can price risk, but they can’t price a tweet,” another exploration and production executive noted in the section.
“The whiplash from diplomacy-by-social-media has become the single most unpredictable input in our planning. We don’t need certainty about the future, just certainty that policy won’t change between the morning and the afternoon,” this executive added.
Another exploration and production company executive highlighted the “Covid-sized supply gap driven by a war being commandeered by an administration that just cannot tell the truth” in the comments section.
“They jawbone the price down basically every Sunday evening. If they know Hormuz reopening isn’t likely, it’ll make the medium-term supply issue ten times worse,” this executive warned.
A different exploration and production company executive noted in the comments section that “Middle East geopolitical tensions and shifts in U.S. tariff policy have contributed to broader shipping constraints and extended lead times for a few products”.
“No oilfield shortages are evident at this time, but we are keeping a close watch on the evolving dynamic,” this company executive added.
It wasn’t all bad news for the White House in the survey respondents comments section though. One exploration and production company executive noted that the Iranian war “of course affects outlooks” but added “I am confident that the administration is doing the right thing as to resolving the conflict”.
Rigzone has contacted the White House for comment on the survey respondents comments section of the latest Dallas Fed Energy Survey. At the time of writing, the White House has not responded to Rigzone.
Activity Jumps
Activity in the oil and gas sector jumped in second quarter of 2026, according to oil and gas executives responding to the Dallas Fed Energy Survey, the latest survey noted.
It highlighted that the business activity index, which it describes as the survey’s broadest measure of the conditions energy firms face in the Eleventh District, increased from 21.0 in the first quarter to 46.1 in the second quarter, “marking the strongest reading since second quarter 2022”.
The survey was in the field from June 9-17 “as the U.S. and Iran negotiated a memorandum of understanding about ending hostilities”, the survey pointed out.
The company outlook index remained positive but edged down to 29.3 in the second quarter, pointing to further improvement in the outlooks since last quarter, the survey stated. It added that exploration and production firms were more positive, with an outlook index of 48.2, and said services firms remained cautious with an outlook of -4.4.
“Meanwhile, the outlook uncertainty index declined from 53.7 to 29.9, indicating that while uncertainty increased on net, fewer firms noted a rise than during last quarter,” the survey said.
The survey went on to note that, according to executives at exploration and production firms, “oil production advanced modestly in the second quarter, while natural gas production saw only minimal gains”.
“The oil production index increased from zero in the first quarter to 15.0 in the second quarter, whereas the natural gas production index remained relatively unchanged at 3.7,” the survey highlighted.
Costs increased at a faster pace relative to the prior quarter, the survey said.
“Among oilfield services firms, the input cost index surged from 34.9 to 64.4, with no respondents reporting a decrease in costs,” it pointed out.
“Among E&P firms, the finding and development costs index increased from 22.3 to 40.0. Meanwhile, the lease operating expenses index rose from 30.0 to 43.7,” it added.
“All cost indexes were above their series averages, suggesting costs are growing at a faster than average pace,” it continued.
According to the survey, oilfield services firms reported improvement in most indicators.
“The equipment utilization index remained positive and was roughly unchanged at 31.9,” it said.
“The operating margin index increased markedly from -7.0 to 52.2, the first positive reading in many quarters, suggesting margins expanded. The prices received for services index advanced from 9.3 to 24.5,” it added.
Employee Demand, Capital Spending
The survey went on to state that, overall, demand for employees increased slightly and hours worked rose.
“The aggregate employment index moved up from 0.8 in the first quarter to 4.7 in the second quarter,” it said.
“The aggregate employee hours index was relatively unchanged at 11.8. Meanwhile, the aggregate wages and benefits index increased slightly from 23.5 to 26.0,” it highlighted.
The survey also noted that capital spending “strengthened considerably”.
“The capital expenditures index advanced from 21.2 to 40.9 during the second quarter, with 49 percent of firms reporting increased spending,” it said.
“However, the index for expected capital expenditures for next year was 0, suggesting cautious long-term planning despite current spending increases,” it added.
“Supplier delivery times lengthened, with the index rising from 4.5 to 31.7. This suggests ongoing supply chain pressures, with 36 percent of firms reporting longer delivery times for materials and equipment,” it went on to state.
The survey highlighted that 127 energy firms responded to the latest survey, and that, of the respondents, 82 were exploration and production firms and 45 were oilfield services firms.
The Dallas Fed notes on its site that it conducts the Dallas Fed Energy Survey quarterly to obtain a timely assessment of energy activity among oil and gas firms located or headquartered in the Eleventh District. The Eleventh District encompasses Texas, northern Louisiana and southern New Mexico, the site points out.
“Firms are asked whether business activity, employment, capital expenditures and other indicators increased, decreased or remained unchanged compared with the prior quarter and with the same quarter a year ago,” the site states.
“Survey responses are used to calculate an index for each indicator. Each index is calculated by subtracting the percentage of respondents reporting a decrease from the percentage reporting an increase,” it adds.
“When the share of firms reporting an increase exceeds the share reporting a decrease, the index will be greater than zero, suggesting the indicator has increased over the previous quarter,” it notes.
“If the share of firms reporting a decrease exceeds the share reporting an increase, the index will be below zero, suggesting the indicator has decreased over the previous quarter,” it goes on to state.
To contact the author, email
