Reserve Replacement Rate (RRR)

Used in the oil and gas sector, Reserve Replacement Rate (RRR) measures new proven reserves, expressed as a percentage of the oil or gas extracted for production. Investors prefer RRR to be 100% or more, because this demonstrates that the company can maintain or increase existing extraction and production levels. RRR of less than 100%, particularly if sustained for an extended time period, makes investors worry that the company will run out of oil and gas.