Despite early hopes for a strong recovery, the U.S. oil and gas industry is facing mounting headwinds in 2025. According to the latest Dallas Federal Reserve survey, low oil prices, lingering tariffs, and worsening water logistics are prompting operators to sideline rigs, cut drilling plans, and brace for a prolonged period of stagnation. Industry executives are sounding the alarm: without higher prices and improved regulatory support, U.S. production may have already peaked — with ripple effects across the global energy market.

Oil & Gas Facility Engineer Contact Directory – $25

Includes: Company, First Name, Last Name, Title, Location, email…..

🔻 1. Drilling Slowdown & Industry Sentiment

Drilling activity contracted in Q2 2025.
Nearly 50% of executives plan to drill fewer wells in 2025 than anticipated.
61% said they would decrease drilling if oil prices stay at $60/bbl.
One exec said: “Drill, baby, drill will not happen with this level of volatility.”

💰 2. Oil Price, Tariffs & Market Pressures

Mid-$60s oil prices are too low for many operators to turn a profit.
Steel tariffs are worsening margins:
- 1/4 say no impact
- 26% say +4–6% cost increase
- 25% say +8–10% or more
Trade war and tariffs blamed for reduced investment:
“Policies have benefitted OPEC to the detriment of our domestic industry.”

💧 3. Water Management as a Growing Constraint

Produced water disposal is becoming a serious cost and logistical issue.
Disposal methods (trucking or reinjection) are expensive and can cause earthquakes.
32% of executives say water is a “significant constraint” on Permian drilling.
Quote: “Water management is a potential disaster waiting to happen.”

🛑 4. Production Plateau & Cost Squeeze

U.S. oil production in April 2025: 13.4 million bpd, flat for 3 quarters.
Some execs believe U.S. production may have peaked.
Rig counts down 50% in some companies; vendors under pressure.
As oil drilling stalls, gas output may also drop, especially in the Permian.

🔮 5. Natural Gas Outlook & Grid Risks

EOG Resources expects gas prices to rise to $4.50/MMBtu, up from ~$3.50.
LNG exports are rising, but lower gas production could tighten supply.
Lack of clean energy investment and policy raises risk of energy instability.

🗣️ Executive Voices (Selected Quotes)

“We were promised a better environment for producers but were delivered one that benefits OPEC.”
“Saltwater disposal costs have reached injurious levels.”
“Suppliers are being squeezed… vendors may not survive.”
“Thank God the previous administration is gone and so are their anti-energy policies.”