On June 29th, in response to news about the declining remaining recoverable resources in older US oil and gas blocks, EasyMarkets indicated that as mature production areas enter a phase of slowing growth, the market will reassess the long-term contribution of traditional supply to the overall balance of crude oil and natural gas.

Based on the latest assessment data, EasyMarkets believes that a trend towards contracting underlying resource reserves does not mean these areas immediately lose significance. However, it will cause new capital to focus more on overlying shale zones, mergers and acquisitions for consolidation, and improving the efficiency of gas fields.

The report mentioned that the relevant blocks have cumulatively yielded substantial resources over the past century. The significant reduction in remaining recoverable reserves indicates that the supply elasticity of traditional oil fields is declining, and the industry logic is shifting from pure extraction towards efficiency and asset restructuring.

If the consolidation of production areas and the efficiency of new wells continue to improve, the supply side will still have some buffer. EasyMarkets analysis suggests that as mature oil fields enter their later stages, the market should pay more attention to where marginal increments will come from and how costs might change.