Oil and Gas Sector Activity Turns Positive as Confidence Rebounds

Business conditions across the oil and gas sector improved markedly in the first quarter of 2026, according to the Dallas Fed Energy Survey. The broadest measure of industry activity swung sharply into positive territory, jumping from -6.2 in the prior quarter to 21.0, while the outlook index among executives climbed even more dramatically, from -15.2 to 32.2, pointing to a genuine improvement in sentiment across exploration and production firms.

Executives also pointed to a more favorable regulatory environment taking shape, with signs that oversight of industry consolidation is becoming more accommodating than in recent years, an early but welcome shift for companies weighing strategic partnerships and mergers. Combined with steady production levels and cautious optimism about long-term prices, the quarter marked one of the more encouraging stretches for the sector in some time.