Investopedia

Continue to Site »

Organic Reserve Replacement

Filed Under »
Dictionary Says

Definition of 'Organic Reserve Replacement'

Oil reserves that an oil company acquires by exploration and production rather than by purchasing proved reserves. Investors looking at the financial strength of oil exploration and production companies should consider the company's organic replacement when evaluating its reserve-replacement ratio. A reserve-replacement ratio achieved organically is considered much better than a reserve-replacement ratio achieved through purchasing.
Investopedia Says

Investopedia explains 'Organic Reserve Replacement'

The reserve-replacement ratio measures the amount of proved reserves added to a company's reserve base during the year relative to the amount of oil and gas produced. A company's reserve-replacement ratio should be at least 100% for the company to stay in business long-term; otherwise, it will eventually run out of oil. The reserve-replacement ratio is just one method investors should use to get an accurate picture of how well an oil company is performing.

Articles Of Interest

  1.

    Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.

  2. A Guide To Investing In Oil Markets

    Find out how to take advantage of this market without having to open a futures account.

  3. Accounting For Differences In Oil And Gas Accounting

    How a company accounts for its expenses affects how its net income and cash flow numbers are reported.

  4. Peak Oil: Problems And Possibilities

    Learn a little more about the "non" part of this nonrenewable resource.

  5. Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.

  6. Unearth Profits In Oil Exploration And Production

    Drill down into financial statements to tap into the right companies and let returns flow.

  7. Getting A Grip On The Cost Of Gas

    Feeling overwhelmed by rising oil prices? We offer some tips that will save you money.

  8. Investing In Oil And Gas UITs

    Unit investment trusts provide direct exposure to the energy sector, fueling better returns.

  9. The Gasoline Business Is All About Location

    Gasoline prices can vary tremendously based on where you are in the world. Here are some of the reasons why it varies so much.

  10. 3 Ways To Lower Gas Prices

    Gasoline is expensive. From increasing overall supply to lowering demand, there are a few ways gas prices could drop.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  2. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  3. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  4. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  5. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.

  6. Lease To Own

    An arrangement where an individual enters into a lease agreement with an owner with the inclusion of a clause that typically gives the individual the right, but not the obligation, to purchase the item leased at a predefined price and time.
Trading Center