Reserve Replacement Ratio (RRR)
Definition
The ratio stakeholders use to analyze the operating performance of companies in the oil exploration and production industry. RRR is a function of the amount of oil added to a company's proven reserves compared to the total amount of oil the company produces during the year. Assuming stable demand, if this ratio falls under 1:1 then the company is tapping into its reserves and will eventually run out of oil.
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