US oil, gas activity rose in first quarter, but energy execs wary of tariffs, Dallas Fed says

Written by Cortis Williams and Georgina McCartney

Houston (Reuters) – A poll showed on Wednesday that the oil and gas activity in the United States increased slightly in the first quarter, but the Energy Company’s executives were pessimistic about the sector’s expectations, according to a FBI poll in Dallas on Wednesday.

Trump has promised to launch US energy dominance, with the declaration of a state of national energy emergency on his first day in office. However, many CEOs surveyed by the Federal Reserve in Dallas expressed concern about Trump’s promise to reduce oil prices, and said that trade and tariff policies may raise the costs of drilling.

Trump imposed a tariff on steel and aluminum on March 12, and more customs tariffs can come on April 2. The executives in the oil industry said that the customs tariff can increase the costs of the oil company for products such as steel used in drilling sites and pipelines.

Konal Patel, the economist at the Federal Reserve in Dallas, said that the imposition of a 25 % tariff for oil and gas companies estimated an increase in the costs of digging a well by 4 %.

“In a strange development in the hope of administration in more oil and local gas production, high -solid tariffs may lead to a lower number of wells due to the high completion costs.”

Another executive official said: “The chaos of the administration is a catastrophe for the markets of commodity.” Drilling, child, drilling “is not less than legend and crying for crying. The introductory policy is impossible for us to predict and we have no clear goal. We want more stability.”

The Outlook Company decreased 12 points to -4.9, indicating slight pessimism between companies, a survey study at Dallas Bank said. The uncertain index increased by 21 points to 43.1.

“There can be” uncertainty that is the result of conflicting messages coming from the new administration, “said another unveiled executive official.

The survey, conducted in mid -March, included 88 exploration and production companies and 42 oil field companies operating in the largest oil producing area in the United States, which include Texas, South New Mexico and North Louisiana.

Customs tariff problems

More than half of the executives to serve the oil fields said that Trump’s import tariff will lead to a decrease in demand for their services this year.

One of the executives said that the definitions immediately increased the costs of her company for cover and tubes by 25 %.

The survey showed that the costs between the oil field services companies increased faster in the first quarter of 2025 compared to the fourth quarter of 2024.