US Oil & Gas Industry Sees Growth in Q3 2026 Despite Elevated Costs

The oil and gas industry in the United States experienced growth during the third quarter of 2026, according to the Federal Reserve Bank of Dallas Energy Survey.

The survey's business activity index stood at 38.8, down from 46.1 in the second quarter but still firmly positive.

Exploration and production companies reported higher oil and natural gas output, with the oil production index rising from 15.0 to 20.7 and the natural gas production index increasing from 3.7 to 14.8.

Costs remained elevated, with finding and development costs at 41.5 and lease operating expenses at 43.9, but oilfield services activity improved nonetheless, with equipment utilization up from 31.9 to 41.9 and operating margins remaining positive at 37.2.