I was going to make an “educational” post today on the subject of the “Big Mac Index” — everyone knows what that is don’t they! — but the following article just came onto my desk. It’s a follow-on from a previous article on oil demand. This article, again from the Rude Awakening newsletter, takes a look at the other side of the equation, oil supply:
By Eric J. Fry
Curves, Peaks and Dips
“Hubbert’s Curve” is NOT part of the female anatomy…
But it is, nevertheless, a thing of beauty to long-term
crude oil investors.
Back in the 1950s, Shell Oil geophysicist, M. King Hubbert,
discovered a phenomenon he dubbed, “Hubbert’s Curve.”
The Shell geophysicist theorized that oil production from a
new field would tend to rise until about half the
recoverable oil had been produced, then peak and fall off
sharply, all along a classic bell-shaped curve.
Furthermore, Hubbert understood that in the real world of […]