Reserve Replacement Ratio

The Reserve Replacement Ratio (RRR) is a metric used by oil and gas companies to measure how well they are replacing the reserves of natural resources they extract. It compares the amount of new reserves added through exploration or acquisition to the amount of reserves actually produced and sold. An RRR of 100% means the company is just replacing what it has used; above 100% indicates growth, while below 100% suggests reserves are shrinking. This ratio helps assess the company's sustainability and future production capability.