Gabriel C. Pérez | KUT News
Oil pump jacks near residential and commercial areas of Odessa.
Texas oil and gas companies reported increased activity in the third quarter but remain uncertain about the impacts of the Iran War, according to the latest Federal Reserve Bank of Dallas Energy Survey.
The survey included responses from 83 exploration and production firms, as well as 42 oilfield services firms across Texas, northern Louisiana and southern New Mexico.
Oil prices have skyrocketed during the United States’ and Israel’s war with Iran, due to the closure of the Strait of Hormuz and damage to infrastructure.
Sign up for the Hello, Houston! daily newsletter to get local reports like this delivered directly to your inbox.
On average, survey respondents said they expect the West Texas Intermediate crude oil price to be about $88 per barrel at the end of the year. However, Federal Reserve senior business economist Kunal Patel said many executives remain uncertain about the outlook for oil and gas firms next year.
“I think a lot of that has to do with the price volatility. It’s kind of unclear where prices will be,” he said during a press briefing Wednesday.
In survey comments, oil and gas executives echoed this uncertainty.
“The Iranian conflict continues to be the wild card in the industry,” a survey respondent from an exploration and production firm wrote. “Its movement correlates with commodity prices.”
“My oil price crystal ball broke when the administration first hit Iran,” wrote a respondent from an oil and gas support services firm.
The Federal Reserve Bank also asked oil and gas leaders when they expect Persian Gulf crude oil exports to return to normal. The highest share of respondents said they expect a return to normalcy in the second quarter of 2026.
The survey saw modest increases in indexes measuring employment and hours worked. However, costs also remained elevated.
“There is some limitation unless firms are willing to pay an incredibly higher price, whether it’s goods or for services,” Patel said. “That’s kind of capping that increase in activity.”
The survey also asked companies about oilfield theft. Nearly half of firms in the Permian Basin said they had experienced oilfield theft. Most exploration and production executives whose companies were impacted by theft said that theft levels remained about the same over the past 12 months. The majority of these companies said the financial impacts of this theft were low.