The age of fixed assets in the oil and gas extraction industry reached an all-time high of nearly 15 years in 2024

The age of fixed assets in the oil and gas extraction industry reached an all-time high of nearly 15 years in 2024. The age of fixed assets—which include equipment, structures, and intellectual property—changes with the amount of new investment. Asset age increases during periods of low capital expenditures. In contrast, periods of high investment reflect new equipment outpacing depreciation of old assets, contributing to a lower average age in the sector. Data from the Bureau of Economic Analysis shows the average age of fixed assets in the oil and gas industry increased for the tenth consecutive year in 2024, consistent with investment declining from an inflation-adjusted peak of $255 billion in 2014 to $106 billion in 2024.