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Hubbert Curve

外汇网2021-06-19 14:37:33 91
A statistical theory of oil production that states that the rate of extraction from a particular region follows a bell shaped curve. Initially, while there are minimum drilling operations the rate of production is limited. However, as infrastructure increases and larger portion of land are explored, resource production approaches peak production. Eventually, as the oil becomes depleted, extraction rates begin to slow down. The Hubbert curve characterizes the life cycle of a drilling operation.

The pdictions psented by the Hubbert Curve satisfy statistical constraints and are intuitively comphensive. Technological improvements or estimated proven reserve changes realized during the production process can alter the shape of the curve.

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