Hubbert Peak Theory

Hubbert Peak Theory theorizes that if you take any geographic piece of the globe that’s producing oil and selling it on the global petro market, the rate of oil production over time for that area will approximately follow a bell curve. The discovery rate, production rate, and cumulative production all change depending on the curve.

There are only so many liquid dinosaur bones underground to extract and sell...you know, the whole “peak oil” theory that we’ll eventually hit maximum oil production, preceding a decline in oil use (which would cost everyone some large transition costs in switching over to other energies).

Hubbert Peak Theory comes from the Hubbert curve: a symmetrical, logistic distribution curve which has been shown to reliably predict the production of limited resources over time (oil being one of them).