The Federal Reserve Bank of Dallas’ Quarterly survey Of over 130 oil and gas manufacturers based in Texas, Louisiana and New Mexico, conducted in June, suggests that the perspectives of the sector are pessimistic. Almost half of the 38 companies that answered this question saw their companies Perforating less wells This year of what they did not expect previously.
The survey participants may also post comments. A manager of an exploration and production company (E & P) said: “It is difficult to imagine how worst the policies and rhetoric could have been for the US companies and & p”. Another manager said: “The Day of liberation The chaos and tariff buffonate damaged the domestic energy industry. “Drill, Baby, Drill” will not happen with this level of volatility. “
About one out of three interviewees has implemented expectations for a smaller number of wells at higher rates on steel imports. And three out of four these rates have increased the cost of perforation and complete new wells.
“They are receiving more places to pierce and are getting lower royalties, but they are also getting these rates they don’t want,” Radier said. “And the bottom line is that their profits will suffer.”
At the beginning of this month, Exxonmobil estimated That his profit in the April -June quarter will be about $ 1.5 billion lower than the three months preceding due to the weakest prices of oil and gas. And beyond in Europe, BP, ShellAND Totalinggies He issued warnings similar to investors regarding their respective profits.
These warnings also come when Trump installed Friendly faces To regulate the oil and gas sector, also at the Energy Department, the Environmental Protection Agency and the Department of Interior, the latter of which manages the Federal Lands and is preparing for more oil and gas lease contracts on these lands.
“There is a lot of enthusiasm for a window of opportunity to make investments. But there is also a lot of caution on wanting to make sure that if there are regulatory reforms, they will attack,” said Kevin Book, CEO of the research of Clearview Energy Partners, who produces analyzes for energy companies and investors.
The Big Beautiful Big Beautiful ACT recently recently provisions Requesting four leasing outshore sales and two offshores every year, reducing the minimum Royalty rate to 12.5 percent from 16.67 percent and reporting the speculative leasing, when the lands that do not invite enough offers are rented for less money, which was stopped in 2022.
“Policies in favor of energy play a fundamental role in strengthening internal production,” said a spokesman for the American Petroleum Institute, the main group of oil and gas industry. “The new tax legislation unlocks the opportunities for safe and responsible development in the basins of critical resources to provide Americans at affordable and reliable prices on which they are based.”
Because about half of the federal royalties ends with the states and places where perforation occurs, “budgets in these oil and gas communities will be affected hard,” said Rowland-Shea of American Progress. In the meantime, he said, the perforation on public land can pollute the air, increase noise levels, cause escape or losses and limit the movement for both people and wildlife.