The latest Dallas Fed Energy Survey offers a sobering view of the U.S. oil and gas sector, and the findings align closely with the concerns I’ve raised in previous analyses about the headwinds that oilfield services (OFS) are expected to face in a high-cost environment. The business activity index barely held positive territory at 3.8, down from 6.0 in Q4 2024, and the outlook index dropped sharply by 12 points to -4.9. This signals growing pessimism among energy firms, further compounded by a 21-point jump in the uncertainty index to 43.1. These signals should not be overlooked—when uncertainty spikes and outlooks turn bearish, it often precedes a broader slowdown in drilling and completions activity.