Investopedia

Continue to Site »

Reserves to Production Ratio

Filed Under » ,
Dictionary Says

Definition of 'Reserves to Production Ratio'

A ratio indicating the remaining lifespan of a natural resource. This ratio is expressed in terms of years, and is used in forecasting the future availability of a resource to determine project life, income, employment etc. While applicable to all natural resources, it is primarily used in the oil and gas industry.

RPR = amount of known resource
 amount used per year
Investopedia Says

Investopedia explains 'Reserves to Production Ratio'

Usage of a resource per year can be calculated, or estimated, to quite an accurate number. However, reserve quantity of a resource can only be estimated. It is imperative for investors to take into account the possibility of new technology, new discoveries or misevaluation by involved parties.

Articles Of Interest

  1.

    Cashing In On Macroeconomic Trends

    Learn to identify the things that may impact your investments down the road.

  2. Peak Oil: Problems And Possibilities

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

  3. Top 10 Green Industries

    Put a little green in your wallet by investing in these growing areas.

  4. Oil As An Asset: Hotelling's Theory On Price

    Not sure where oil prices are headed? This theory provides some insight.

  5. Uncovering Oil And Gas Futures

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

  6. Getting A Grip On The Cost Of Gas

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

  7. Investing In Oil And Gas UITs

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

  8. 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.

  9. 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.

  10. How Shale Fracking May Hurt Your Investment

    With news that shale drilling has caused earthquakes, you may want to rethink your investments.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center