Gloom in oil country from Marketplace. I'm Sabree Beneshore in for David Brancaccio.

Texas oil and gas firms are feeling pessimistic about the upcoming year. In the latest Dallas Fed survey, energy firms reported lower production, increased costs, and heightened uncertainty.

Oil is, of course, a good chunk of the Texas economy,

and the Texas economy is a good chunk of the U.S. economy, around 9%. Marketplace's Elizabeth

Troval has more on what it all means. Typically, Canal Patel with the Dallas Fed, says oil and gas

executives tend to look at the bright side. And right now they're pessimistic.

Some of their top concerns.

Comani prices, uncertainty, geopolitics. Relatively weak oil prices is the big issue with OPEC plus

raising production in an already amply supplied market. And tariffs aren't helping, says Carr Ingham with the Texas

Alliance of Energy producers. There's just no denying that tariffs raise costs to the oil and gas

industry. And there's no denying that that's happening in a year in which the price of the

commodity that they sell is lower than it was last year.

The cost cutting has already begun for oil and gas firms and will likely continue,

says Dan Pickering with Pickering Energy Partners.

We've seen layoffs.

We'll probably see some more.

I would say lower activity, ongoing consolidation, because the companies are looking for

ways to gain efficiency, ways to gain size and scale. But he's not betting against the state's oil

producers either. Net, net, net, Texas is blessed and will continue to be. The Permian Basin

currently produces more oil than most countries.

I'm Elizabeth Troval for Marketplace.

Speaking of oil, BP has approved a $5 billion investment in a deepwater oil platform,

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