US shale to slow drilling in 2025 as profits decline — Dallas Fed poll

According to a quarterly survey by the Federal Reserve Bank (Fed) of Dallas, US shale companies are set to drill fewer wells this year than initially planned as uncertainty over President Donald Trump's tariffs and lower oil prices hurt profits.

Nearly half of oil executives said they project lower drilling activity this year. 42% of firms, producing 10,000 barrels per day or more, forecast the number of wells drilled to fall. Most companies stated that the cost of drilling and completing new wells rose by 4.01% to 6%, driven by the US administration’s import duties. Oil prices have fallen as the American president’s tariffs could slow the global economy, and OPEC+ continues to ramp up production.

The results highlight the challenges facing American oil producers. Industry executives have to be cautious about drilling and spending, in contrast to Trump’s plans to boost energy production.