Hubbert Curve
Candlefocus EditorThe curve divides productions into three phases: growth, peak and decline. In the growth phase, production gradually increases but only if the expenditure on operations is sufficiently large. During the peak phase, production rates reach maximum levels and then start to decline. The declining phase is caused by increasing production costs, declining resources and technological constraints.
The Hubbert curve is based on the assumption that the finite resource is non-renewable and eventually will run out. This is also known as Peak Oil Theory, which suggests that eventually production of oil will peak, and then start to decline as the resource becomes depleted. As a result, producers are incentivized to make investments in diversifying production sources to address the eventual decline.
The Hubbert curve has been applied across the energy industry, from oil to natural gas to electricity generation. In addition, the Hubbert curve is used to illustrate the role of energy in economic growth. As energy production rises, economic activity increases, but as production falls and resources become scarce, economic activity slows down.
In recent years, the Hubbert curve has been increasingly used to discuss the implications of climate change and global energy policy in the context of finite resources. It has been used to highlight the need for greater energy efficiency and better energy management, as well as the importance of diversifying energy sources. It emphasizes the importance of reducing emissions, investing in renewables and transitioning away from fossil fuels.
In summary, the Hubbert curve is an important tool for predicting the production rate of any finite resource. It emphasizes the need for diversifying and managing finite resources to ensure continued production while also limiting the potential damage caused by depleting such resources. The curve also serves as an important reminder of the need to shift away from fossil fuels and towards more sustainable energy sources.