Excess & Obsolete (E&O) Reserve benchmark
Excess & Obsolete (E&O) Reserve Benchmark for Oil & Gas Distribution (2026)
Last updated September 2026
The short answer
In oil & gas distribution, excess & obsolete (e&o) reserve typically runs 15–30% — above the cross-industry band of 5–15% of inventory. Project leftovers drive high E&O in yards.
Formula
E&O Reserve = Σ (at-risk inventory value × age/consumption risk factor) Oil & gas against the cross-industry band
| Industry | Typical E&O reserve | What good looks like |
|---|---|---|
| All industrial distribution | 5–15% of inventory | Disciplined operations hold E&O under 7% |
| Oil & Gas Distribution | 15–30% | Project leftovers drive high E&O in yards |
Lower is better on this metric. Every other industry benchmarked for E&O reserve is in the full benchmark table.
What excess & obsolete (e&o) reserve measures
The excess and obsolete (E&O) reserve is the share of inventory value written down because it is unlikely to sell. In industrial and MRO operations, 15–25% of stock is commonly excess or obsolete.
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