![]() Profits fall and the capability of the industry to invest in new extraction falls as a consequence. Then, depletion slowly forces the industry to move to lower return resources. ![]() ![]() The idea underlying the model is that exploitation starts with the best, highest return resources. We can take the Hubbert model as a first step for the description of an economic system based on the exploitation of a non renewable resource. It works not just for oil, also for other mineral resources and for slowly renewable biological resources, such as whales (Bardi 2007). The Hubbert model has been shown to be a good description of many historical cases of oil producing regions, as reported, for instance, by Adam Brandt in his 2007 paper " Testing Hubbert". Oil production in the US did peak when Hubbert had said it would, in 1970. ![]() If you are interested in this subject, you probably have seen this plot many times and you also know that it worked nicely as a prediction. Account icon An icon in the shape of a person's head and shoulders. ![]()
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