New data on Wednesday from the Dallas Fed Energy survey, which polled oil and gas executives at 139 firms across Texas, northern Louisiana and southern New Mexico in mid-September, shows oil and gas activity slipped again in the third quarter of 2025. Soaring costs, policy uncertainty, and new tariffs are weighing heavily on the industry.

The survey’s broadest measure of business conditions, the business activity index, came in at -6.5, marking the second consecutive quarter of contraction.

The outlook is even gloomier. The company outlook index plunged too -17.6 from -6.4, while over 44% of firms report uncertainty remains elevated. Both oil and natural gas production decreased, and costs for drilling and equipment leasing surged.

‘The noise and chaos is deafening’

Executives were blunt in the anonymous comments accompanying the survey.

“The uncertainty from the administration’s policies has put a damper on all investment in the oilpatch,” one executive wrote. “Those who can are running for the exits.”

Another added that “the administration’s tariffs, particularly on steel…”