Oil & Gas Support Services NAICS 213112

Jul 27, 2025 - Larger Oil & Gas Producers to Trim Capex

• According to the latest quarterly Dallas Fed Energy Survey, more than a quarter (27%) of oil-and-gas companies active in Texas and adjacent territories plan to cut back on capital spending in 2026, reducing demand for steel pipe used in energy production. By comparison, nearly 40% expect spending on capex to rise next year. The survey of business leaders at exploration and development companies and oilfield services firms found the drop to be concentrated among large producers, with 75% saying they now expect to drill fewer wells this year than planned to at the start of 2025. By contrast, only 34% of leaders from smaller companies said they’ve scaled back their plans. The share of business leaders surveyed in the second-quarter who said they expect to trim capex in the next year was the highest since late 2023.
• Global demand for oil – a demand driver for oil and gas support services – is forecast to ease due to global trade tensions and a bigger-than-anticipated supply surplus if OPEC+ raises output beyond April, The Wall Street Journal reports citing the latest projections from the International Energy Agency (IEA). “New US tariffs will clearly act as barriers to global trade and economic growth,” the Paris-based agency said, adding “The lack of clarity due to their on-again off-again nature, combined with the potential for retaliation and escalation, has caused uncertainty to soar.” IEA lowered its demand-growth estimates for the fourth quarter of 2024 and first quarter of 2025 to around 1.2 million barrels per day (bpd). Its revised estimates see global demand growing by 1.03 million bpd versus 1.1 million bpd previously, reaching 103.9 million bpd on average, WSJ reports.

• On his first day in office President Trump declared a national energy emergency to maximize oil and gas production, speed permitting, roll back environmental protections, and withdraw the US from the 2015 Paris climate deal. But with US production at record levels, it remains to be seen if Trump’s actions will have any impact. Still, the mood in the oil and gas industry – a major customer for oil and gas support services – is optimistic, according to The American Oil & Gas Reporter. “It borders on exuberant,” described Karr Ingham, president of Texas Alliance of Energy Producers. The American Petroleum Institute, has a roadmap for the second Trump administration that includes swiftly authorizing liquified natural gas exports, expanding drilling on federal lands, making pipeline permitting easier, repealing strict vehicle emissions and fuel economy standards, and keeping current corporate tax rates in place.
• Producer prices for oil and gas support activities rose 1% in June compared to a year ago, after rising 2.1% in the previous June-versus-June annual comparison, according to the latest US Bureau of Labor Statistics data. Despite their recent easing, industry producer prices remain historically high. Employment by oil and gas support services shrank 3.39% year over year in May, while the average industry wage rose 6% over the same period to $36.40 per hour, BLS data show. Declining crude oil prices have contributed to US oil producers slowing their drilling and completion activity this year, according to the Energy Information Administration, reducing demand for oil and gas support services.