Measuring Reserves
There are several methods of reviewing reserve data and drawing comparisons. Reserves can be measured in terms of years compared to production life. Reserves can also be measured in terms of the ratio of production to reserves. Finally, reserves can be measure in terms of a percentage.
Reserve to Production Ratio (Years)
A reserve-to-production-life ratio tells us how many years an entity can continue to produce oil or gas, at current production rates, before exhausting its existing reserve base. This ratio is measured in terms of years as illustrated in Table 6.3 crude oil reserves-to-production ratio. Iran has overtaken Saudi Arabia for the highest reserve-to-production ratio at 89.4 years .
Table 6.3 Crude Oil Reserves to ...
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