Houston: Oil and gas production across Texas, Louisiana, and New Mexico recorded a slight decline in the third quarter of 2025, according to the latest survey conducted by the Federal Reserve Bank of Dallas. The report, released on Wednesday, highlights a modest contraction in activity across some of the nation’s most significant energy-producing regions, signaling potential challenges for the sector moving forward.
The Dallas Fed survey, which gathers data from a wide array of oil and gas operators across the three states, indicated that the decrease, though not drastic, represents a continuation of subdued activity observed in previous quarters. Industry analysts suggest that factors such as fluctuating crude prices, evolving regulatory frameworks, and operational bottlenecks may have contributed to the slowdown.
Texas, home to the prolific Permian Basin, along with Louisiana and New Mexico, has historically been at the forefront of U.S. energy production. Any sustained dip in activity in these states could influence national energy output and impact employment and investment within the sector. The survey’s findings also underscore the sensitivity of regional oil and gas operations to broader market trends and local operational constraints.
While the decline is relatively moderate, stakeholders and policymakers are urged to monitor developments closely. A continued slowdown could prompt strategic adjustments, including revisiting investment plans and production schedules, to maintain stability in energy supply and regional economic growth. The Dallas Fed survey provides an important benchmark for gauging the health of oil and gas activity and guiding informed policy and business decisions in the sector.