Resource vs. Reserve — What's the Difference?
By Maham Liaqat & Fiza Rafique — Updated on May 13, 2024
A resource refers to the total amount of a material available for use, regardless of feasibility, whereas a reserve is specifically that portion of a resource which can be economically extracted or produced at present.
Difference Between Resource and Reserve
Table of Contents
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Key Differences
A resource encompasses all deposits of a mineral or other commodity, including those that are currently inaccessible or not viable to exploit due to economic, environmental, or technological reasons. On the other hand, a reserve consists only of those parts of a resource that can be economically extracted or utilized with existing technology under current market conditions.
Resources are often speculative and include quantities that may be anticipated based on geological patterns or theory, which have not necessarily been proven. Whereas reserves have been thoroughly investigated, are quantified, and their extraction is considered feasible and profitable given the current state of technology and economic conditions.
The estimation of resources provides a broad view of potential material availability and can be optimistic, encompassing hypothetical or undiscovered quantities based on geological surveys. Conversely, reserve estimates are conservative, grounded in detailed exploration, and often used in financial and planning decisions by businesses and governments.
The classification of a mineral deposit as a resource may require minimal data and can be based largely on indirect evidence and geological extrapolation. On the other hand, classification as a reserve requires detailed exploration, viability studies, and often regulatory approvals, emphasizing its ready-to-use status.
Over time, parts of a resource can be reclassified as reserves due to advancements in technology, improvements in economic viability, or changes in regulatory environments. This dynamic nature means that what is considered a resource today may become a reserve tomorrow and vice versa.
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Comparison Chart
Definition
Total available deposits, accessible or not.
Economically viable portion of a resource.
Dependence on Factors
Geological data, less dependent on current economic or technological factors.
Strongly dependent on economic viability and existing technology.
Certainty
Less certain, includes undiscovered or unproven quantities.
Well-defined, proven quantities that are ready for extraction.
Economic Viability
Not necessarily economically viable currently.
Must be economically viable under current conditions.
Use in Planning
Used for long-term planning and potential future exploitation.
Used for immediate financial and operational planning.
Compare with Definitions
Resource
Broadly includes all discovered and undiscovered deposits.
Global oil resources include known fields and those yet to be discovered.
Reserve
Used in economic forecasting and investment.
Companies report their reserves to attract investors or comply with regulations.
Resource
Includes renewable and non-renewable sources.
Solar energy is considered a limitless resource under current technological capabilities.
Reserve
Dynamic, adjusting to economic changes.
If the price of platinum rises, previously unviable deposits may become reserves.
Resource
Subject to reevaluation as conditions change.
Advances in extraction technology could convert part of a resource into a reserve.
Reserve
Often linked to regulatory standards.
Proven reserves are legally reportable and influence company stock valuations.
Resource
Not limited by current technology or economic conditions.
Coal resources in a region might be vast, but only a portion is feasible to mine.
Reserve
To keep back, as for future use or for a special purpose
The hospital reserves certain drugs for the most serious cases.
Resource
Resource refers to all the materials available in our environment which help us to satisfy our needs and wants. Resources can broadly be classified upon their availability — they are classified into renewable and non-renewable resources.
Reserve
To set or cause to be set apart for a particular person or use
Reserved a seat on the next flight out.
Resource
Something that is available for use or that can be used for support or help
The local library is a valuable resource.
Reserve
Something kept back or saved for future use or a special purpose
A runner with a reserve of energy for the final lap.
Resource
Often resources An available supply, especially of money, that can be drawn on when needed.
Reserve
An amount of capital that is not invested or otherwise used in order to meet probable demands, such as withdrawals by bank depositors or claims on insurance policies.
Resource
The ability to deal with a difficult or troublesome situation effectively; resourcefulness
A person of resource.
Reserve
Lack of enthusiasm, as from a misgiving or doubt
Supported the idea without reserve.
Resource
A means that can be used to cope with a difficult situation; an expedient
Needed all my intellectual resources for the exam.
Reserve
Self-restraint in expression or bearing; reticence or coolness
Maintained a dignified reserve throughout the ceremony.
Resource
Resources The total means available for economic and political development, such as mineral wealth, labor force, and armaments.
Reserve
A reservation of public land
A forest reserve.
Resource
Resources The total means available to a company for increasing production or profit, including plant, labor, and raw material; assets.
Reserve
An amount of a mineral, fossil fuel, or other resource known to exist in a particular location and to be exploitable
The discovery of large oil reserves.
Resource
Such means considered individually.
Reserve
A fighting force kept uncommitted until strategic need arises.
Resource
Something that one uses to achieve an objective, e.g. raw materials or personnel.
Reserve
The part of a country's armed forces not on active duty but subject to call in an emergency.
Resource
A person's capacity to deal with difficulty.
A man or woman of resource
Reserve
A member of either of these forces
The army's active reserves.
Resource
Something that can be used to help achieve an aim, especially a book, equipment, etc. that provides information for teachers and students.
Reserve
A group of players that play only as substitutes for starters in games or are kept from playing for some reason.
Resource
(networking) Hardware or software accessible by a computer, network, or another object connected to a computer.
Reserve
One of these players.
Resource
To supply with resources.
Reserve
Held in or forming a reserve
A reserve supply of food.
Resource
To source anew or differently; to find or provide a new source for.
Reserve
(behaviour) Restriction.
Resource
That to which one resorts orr on which one depends for supply or support; means of overcoming a difficulty; resort; expedient.
Threat'nings mixed with prayers, his last resource.
Reserve
The act of reserving or keeping back; reservation; exception.
The book is on reserve.
Resource
Pecuniary means; funds; money, or any property that can be converted into supplies; available means or capabilities of any kind.
Scotland by no means escaped the fate ordained for every country which is connected, but not incorporated, with another country of greater resources.
Reserve
Restraint of freedom in words or actions; backwardness; caution in personal behavior.
Resource
Available source of wealth; a new or reserve supply that can be drawn upon when needed
Reserve
That which is reserved or kept back, as for future use.
Resource
A source of aid or support that may be drawn upon when needed;
The local library is a valuable resource
Reserve
A natural resource known to exist but not currently exploited.
New oil reserves are continuously being discovered, but not as fast as the existing ones are running out.
Resource
The ability to deal resourcefully with unusual problems;
A man of resource
Reserve
A tract of land reserved, or set apart, for a particular purpose
The Connecticut Reserve in Ohio was originally set apart for the school fund of Connecticut.
The Clergy Reserves in Canada are for the support of the clergy.
Resource
Geologically based estimates.
Resource estimates for copper might extend to deposits not yet feasible to extract.
Reserve
(Canada) A tract of land set apart for the use of an Aboriginal group; Indian reserve (compare US reservation.)
Reserve
(military) A body of troops kept in the rear of an army drawn up for battle, reserved to support the other lines as occasion may require; a force or body of troops kept for an exigency.
Reserve
Funds kept on hand to meet planned or unplanned financial requirements.
Reserve
A reserve price in an auction.
Reserve
Wine held back and aged before being sold.
Reserve
(ceramics) Absence of color or decoration; the state of being left plain.
Reserve
(social) Something initially kept back for later use in a recreation.
Reserve
(sports) A member of a team who does not participate from the start of the game, but can be used to replace tired or injured team-mates.
Reserve
(card games) A group or pile of cards dealt out at the beginning of a patience or solitaire game to be used during play.
Reserve
In exhibitions, a distinction indicating that the recipient will get a prize in the event of another person being disqualified.
Reserve
(calico printing) A resist.
Reserve
A preparation used on an object being electroplated to fix the limits of the deposit.
Reserve
To keep back; to retain.
We reserve the right to make modifications.
Reserve
To keep in store for future or special use.
This cake is reserved for the guests!
Reserve
To book in advance; to make a reservation.
I reserved a table for us at the best restaurant in town.
Reserve
(obsolete) To make an exception of; to except.
Reserve
To keep back; to retain; not to deliver, make over, or disclose.
Reserve
Hence, to keep in store for future or special use; to withhold from present use for another purpose or time; to keep; to retain; to make a reservation{7}.
Hast thou seen the treasures of the hail, which I have reserved against the time of trouble?
Reserve your kind looks and language for private hours.
Reserve
To make an exception of; to except.
Reserve
The act of reserving, or keeping back; reservation.
However any one may concur in the general scheme, it is still with certain reserves and deviations.
Reserve
That which is reserved, or kept back, as for future use.
The virgins, besides the oil in their lamps, carried likewise a reserve in some other vessel for a continual supply.
Reserve
That which is excepted; exception.
Each has some darling lust, which pleads for a reserve.
Reserve
Restraint of freedom in words or actions; backwardness; caution in personal behavior.
My soul, surprised, and from her sex disjoined,Left all reserve, and all the sex, behind.
The clergyman's shy and sensitive reserve had balked this scheme.
Reserve
A tract of land reserved, or set apart, for a particular purpose; as, the Connecticut Reserve in Ohio, originally set apart for the school fund of Connecticut; the Clergy Reserves in Canada, for the support of the clergy.
Reserve
A body of troops in the rear of an army drawn up for battle, reserved to support the other lines as occasion may require; a force or body of troops kept for an exigency.
Reserve
Funds kept on hand to meet liabilities.
Reserve
That part of the assets of a bank or other financial institution specially kept in cash in a more or less liquid form as a reasonable provision for meeting all demands which may be made upon it;
Reserve
In exhibitions, a distinction which indicates that the recipient will get a prize if another should be disqualified.
Reserve
A resist.
Reserve
A preparation used on an object being electroplated to fix the limits of the deposit.
Reserve
Formality and propriety of manner
Reserve
Something kept back or saved for future use or a special purpose
Reserve
An athlete who plays only when another member of the team drops out
Reserve
(medicine) potential capacity to respond in order to maintain vital functions
Reserve
A district that is reserved for particular purpose
Reserve
Armed forces that are not on active duty but can be called in an emergency
Reserve
The trait of being uncommunicative; not volunteering anything more than necessary
Reserve
Hold back or set aside, especially for future use or contingency;
They held back their applause in anticipation
Reserve
Give or assign a share of money or time to a particular person or cause;
I will earmark this money for your research
Reserve
Obtain or arrange (for oneself) in advance;
We managed to reserve a table at Maxim's
Reserve
Arrange for and reserve (something for someone else) in advance;
Reserve me a seat on a flight
The agent booked tickets to the show for the whole family
Please hold a table at Maxim's
Reserve
Not engaged in military action
Reserve
Kept in reserve especially for emergency use;
A reserve supply of food
A spare tire
Spare parts
Reserve
Must be economically extractable.
Proven oil reserves are those that can be economically recovered with existing technology.
Reserve
Confirmed through exploration and analysis.
Gold reserves in a mine have been drilled, tested, and are known to be economically viable.
Common Curiosities
Why is it important to differentiate between resources and reserves in environmental planning?
Differentiating helps in sustainable management, ensuring that extraction is economically sensible and environmentally justifiable.
What role do technological advancements play in resource and reserve classification?
Technological improvements can make extraction more feasible and environmentally friendly, potentially turning resources into reserves.
What impact do market prices have on the classification of reserves?
Fluctuating market prices can render previously unprofitable reserves viable, altering their classification.
How do regulations influence the reporting of reserves?
Regulations often require accurate reporting of reserves for transparency and to ensure responsible management of natural resources.
Can the status of a resource change to a reserve?
Yes, with changes in technology, economic conditions, or regulatory environments, resources can be reclassified as reserves.
How are resources and reserves measured and reported?
They are measured through geological surveys and exploratory drilling, and reported in compliance with industry standards and regulations.
How does the reclassification from resource to reserve affect a country's economy?
It can boost economic prospects by attracting investment, increasing exports, and creating jobs in extraction and related industries.
Are resources or reserves more significant for long-term planning?
Resources are critical for long-term strategic planning, providing a broader perspective on potential future exploitation.
What are some examples of resources becoming reserves?
Shale gas in the United States was once considered a marginal resource but became a significant reserve with advancements in fracking technology.
What is the key difference between a resource and a reserve?
Resources are all-encompassing, including unextracted and speculative quantities, while reserves are specific portions that are economically viable for extraction.
How does the classification of reserves affect a company's value?
Reserve estimates directly impact a company's market value and investment appeal, as they reflect the economically recoverable assets.
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Written by
Maham Liaqat
Co-written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
