Decline in Oil and Gas Activity in the Southwestern USA in the Third Quarter of 2025

In the course of the recent Dallas Fed report, a slight decline in oil and gas production was observed in the major producing states of Texas, Louisiana, and New Mexico in the third quarter of 2025. Despite this downturn, oil service companies recorded a cost increase, albeit at a more moderate pace than in previous quarters. Companies in the sector forecast that the price of West Texas Intermediate oil will be at $63 per barrel by the end of 2025, while the price of Henry Hub natural gas is expected to be $3.30 per million British Thermal Units (MMBtu). This data comes from a survey conducted between September 10 and 18, in which 93 exploration and production firms as well as 46 oil service companies participated.