Reserves-to-production ratio

The reserves-to-production ratio (also called R/P) is an important measurement that tells us how much of a resource, like oil or gas, a company has left in its reserves (the amount of resources in the ground that the company can use) compared to how much it produces. In other words, it tells us how much of a resource the company has left and how long it will take them to use it all up. The higher the R/P ratio, the greater amount of a resource the company has and the longer it will take them to use it all up.