LUBBOCK, Texas (RFD NEWS) — Oil and gas companies are planning for a period of modest prices and elevated uncertainty, a combination that could influence fuel costs, rural economies, and agricultural input expenses through 2026. The latest Dallas Federal Reserve Energy Survey shows executives budgeting conservatively as activity remains soft and outlooks stay cautious.
Survey respondents expect West Texas Intermediate crude oil to average about $62 per barrel by the end of 2026, with longer-term expectations rising to $69 in 2 years and $75 in 5 years. Natural gas prices are forecast near $4.19 per MMBtu at year-end 2026. Those levels suggest limited near-term price upside, reinforcing disciplined capital spending plans across the energy sector.
Operational challenges remain. Business activity stayed negative late in 2025, while uncertainty remained elevated. Production was largely flat, and oilfield service firms reported compressed margins, weaker equipment utilization, and lower prices for services. Employment also softened, with fewer hours worked and slower wage growth.
For agriculture, the outlook is mixed. Stable oil prices could help limit diesel, freight, and irrigation costs, while natural gas pricing will continue to influence fertilizer and energy expenses. At the same time, restrained drilling activity may reduce economic support in energy-dependent rural regions.
Farm-Level Takeaway: Moderate oil prices may ease fuel costs, but continued caution in the energy sector could limit rural economic growth.
Tony St. James, RFD NEWS Markets Specialist
Agriculture remains a key drag on regional growth amid weak prices and policy uncertainty.
February 12, 2026 08:00 AM
·
Dr. Kelly Bruns from the Nebraska College of Technical Agriculture discusses how the college prepares students for careers in agriculture.
February 10, 2026 02:27 PM
·
A transition from traditional, technology-specific subsidies toward a performance-based, technology-neutral framework
February 10, 2026 08:00 AM
·
Lower freight costs helped sustain export demand amid a challenging pricing environment.
February 10, 2026 06:00 AM
·
New Holland VP Ryan Schaefer shares insights into the brand’s legacy and innovations that support U.S. cattle producers.
February 09, 2026 02:46 PM
·
February 09, 2026 01:24 PM
·
The USDA’s February WASDE report looms as the CME Ag Economy Barometer shows declining farmer confidence, and more ag industry groups calling for swift policy action.
February 06, 2026 04:18 PM
·
We caught up with John Deere’s Hay & Forage Got-To Market Manager Kaylene Ballesteros to learn how tech is evolving how producers make hay, from baling efficiency to operator confidence.
February 04, 2026 12:38 PM
·
U.S. Senator Roger Marshall of Kansas discusses expected changes to the 45Z tax credit and what they could mean for agriculture and rural America.
February 04, 2026 11:13 AM
·
