**Dallas Fed Survey: Uncertainty Climbs, E&P Spending Plans Holding Up**
In the latest Dallas Fed survey, oil and gas executives have reported a significant increase in uncertainty due to ongoing regulatory and environmental concerns, yet they remain committed to their long-term production and investment plans. Here, we delve into the key findings and implications of the survey.
### Regulatory Roadblocks and Environmental Policies
The survey highlights the mounting regulatory challenges facing the industry, particularly from the Biden administration’s recent policies. The politically motivated pause on permitting for liquified natural gas (LNG) exports has been a major concern, alongside other regulatory measures such as the Securities and Exchange Commission (SEC) climate disclosure proposals and the Environmental Protection Agency (EPA) Quad O/b and revised Clean Power Plan. These regulations have been seen as barriers to investment and production, with executives pointing out that overregulation is a significant burden on their operations
One executive noted, “Regulations continue to take a toll. SEC climate disclosure proposals, the EPA Quad Ob/c, and the revised Clean Power Plan raise our costs and burden of compliance.” This sentiment is echoed across various E&P firms, who emphasize the need for more pragmatic policy approaches to support sustainable growth in the industry.
### Political Uncertainty
The upcoming 2024 U.S. elections are contributing to substantial uncertainty for companies seeking to make long-term investments. The ever-shifting regulatory landscape and political rhetoric cause frequent project delays, as customers become cautious about committing to major purchases or investments. Executive comments reflect this trend, explaining that inconsistency in policy hinders long-term planning: “Political uncertainty is the largest obstacle for our industry.”
### Activity and Outlook Indices
The survey results show a decline in overall activity for the third quarter of 2024 compared to previous quarters. The business activity index for oil and gas firms dropped to -5.9, indicating a small decline in overall activity. This decline was more pronounced among service firms, with the