US oil and gas sector turns even more downbeat

• Dallas Fed Energy Survey:

  • Quarterly survey shows increasing industry pessimism.
  • Headline measure dipped to -8.1 in Q2 2025 from 3.8 in Q1.
  • Consistent deterioration in capex, supplier deliveries, labor, and wages.

• Sentiment Analysis:

  • Clear negative shift in H1 2025.
  • Notable drop after optimism in Q4 2024 due to US President Donald Trump's election.

• Oil Prices and Production:

  • WTI oil prices down nearly 7% year-to-date.
  • US oil production declined from 13.63m b/d in December 2024 to 13.43m b/d in June 2025.

• Industry Concerns:

  • Increased anxiety about costs and tariffs, especially on steel.
  • Geopolitics gained importance in Q2 2025 due to the Israel-Iran war.
  • Concerns over prices and regulation decreased.

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