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.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Reserve Ratio

    The portion ...

  2. Raw Materials

    A material or ...

  3. Renewable Resource

    A substance of ...

  4. Nonrenewable Resource

    A resource of ...

  5. Percentage Depletion

    A taxable ...

  6. Petrodollars

    The money earned ...

  7. Sweet Crude

    A type of oil ...

  8. Downstream

    The oil and gas ...

  9. Natural Gas Equivalent

    The amount of ...

  10. Crude Oil

    A naturally ...

Articles Of Interest

  1. Cashing In On Macroeconomic Trends

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

  2. Top 10 Green Industries

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

  3. Peak Oil: Problems And Possibilities

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

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

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

  5. Getting A Grip On The Cost Of Gas

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

  6. Investing In Oil And Gas UITs

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

  7. What Determines Oil Prices?

    Changes in the price of oil aren't arbitrary. Read on to find out what moves them and why.

  8. A Guide To Investing In Oil Markets

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

  9. Uncovering Oil And Gas Futures

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

  10. Fueling Futures In The Energy Market

    The energy market influences every aspect of our lives, and these four options are its driving force.
Sponsored links

comments powered by Disqus
Hot Definitions

  1. Love Money

  2. Shark Watcher

  3. Judo Business Strategy

  4. Dogs Of The Dow

  5. Chinese Hedge

  6. X-Mark Signature

Recommended
Loading, please wait...
See More »
Trading Center