Dallas Fed survey shows first quarter oil activity is up

Activity in?U.S. The Federal Reserve Bank of Dallas released a report on Wednesday that showed the oil and gas industry in Texas, Louisiana, and New Mexico, the three 'key producing states,' increased during the first quarter of the year 2026, although production was stable. The Federal Reserve Bank of Dallas said that oil executives are waiting to see how prices will settle over the next six month following the volatility and disruption caused by the Iran War. However, they expect the focus to rise on energy security.

Kunal Patel said that large companies need to wait two to three months before they adjust their plans. He made this statement during a conference call with the media.

The survey, conducted between 11-19 March, revealed that costs increased slightly faster than in the previous quarter. Dallas Fed reported that 92 of the '135 respondents' were oilfield service firms and 43 were exploration and production companies.

The survey revealed that companies expect an average oil price in West Texas of $74 per barrel by the end of 2026. WTI prices were $94.63 on average during the survey period.

The respondents also predict a Henry Hub natural gas price of $3.60 per mMBtu by year-end 2026. Reporting by Siddharth Cavale in New York, Editing by Chizu?Nomiyama and Barbara Lewis

(source: Reuters)