Kimmeridge: US Oil Reserve Replacement Falls to 95% as Gas Stays Abundant
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New York – September 24, 2026 -- U.S. oil producers are replacing only 95 barrels of proved developed reserves for every 100 barrels extracted, according to a new white paper from alternative asset manager Kimmeridge, even as natural gas reserve replacement remains above 120%.
Capital efficiency erodes despite operational gains
The industry's three-year value-weighted recycle ratio dropped to 167% in 2025 from 184% in 2019, Kimmeridge found, despite higher revenue per barrel of oil equivalent and continued improvements in corporate costs and drilling efficiency. The report, titled "Shale's Golden Years, Part II: The Cost of Aging," follows the firm's 2024 publication that argued consolidation could offset an aging shale resource base.