DEFINITION of 'Hubbert Peak Theory'
Similar to the predictions of the Hubbert Curve, the Hubbert Peak Theory implies that maximum production from an oil reserve will occur towards the middle of the reserve life cycle.
The theory suggests the production rate from a region follows a bell shaped pattern. The region can be a country or just a certain oilfield.
INVESTOPEDIA EXPLAINS 'Hubbert Peak Theory'
Although the Hubbert Peak Theory has been most discussed in reference to the oil industry, the theory is also applicable to natural gas, coal, transition metals, precious metals and even water.
Prior to natural resource extraction, a firm will often estimate the expected Hubbert Curve to gain insight into future production rates.

Hubbert Curve
A statistical theory of oil production that states that the rate ... 
Probable Reserves
After an oil exploration firm conducts a seismic survey of a ... 
Proven Reserves
After an oil exploration firm conducts a seismic survey on a ... 
Oil Reserves
An estimate of the amount of crude oil located in a particular ... 
Royalty Interest
In the oil and gas industry this refers to ownership of a portion ... 
Peak Oil
A hypothetical date referring to the world's peak crude oil production, ...

How do I use the rule of 72 to estimate compounding periods?
The rule of 72 is best used to estimate compounding periods that are factors of two (2, 4, 12, 200 and so on). This is because ... Read Full Answer >> 
How can I use Bollinger Bands® to spot options trading opportunities?
Traders can use Bollinger Bands in a couple of different types of trading strategies. The most common strategy is using Bollinger ... Read Full Answer >> 
How can I run linear and multiple regressions in Excel?
The first step in running regression analysis in Excel is verifying that your software has the capabilities to perform the ... Read Full Answer >> 
How do I calculate a modified duration using Matlab?
The modified duration gauges the sensitivity of the fixed income securities to changes in interest rates. To calculate the ... Read Full Answer >> 
How do I calculate the rule of 72 using Matlab?
In finance, the rule of 72 is a useful shortcut to assess how long it takes an investment to double given its annual growth ... Read Full Answer >> 
How do I calculate the standard error using Matlab?
In statistics, the standard error is the standard deviation of the sampling statistical measure, usually the sample mean. ... Read Full Answer >>

Economics
J.D. Rockefeller: From Oil Baron To Billionaire
More than 70 years after his death, this man remains one of the great figures of Wall Street. 
Taxes
Spoil Your Grandkids, Cut Your Tax Bill
Helping your grandchildren save for college is a way to spoil them and reap some benefits yourself. 
Mutual Funds & ETFs
Commodity Funds 101
These funds make investing in gold, oil or grain an easier prospect. 
Options & Futures
An Introduction To Canadian Income Trusts
Yields in excess of 10% aren't rare, but these unique investments need to be chosen very carefully. 
Active Trading
How Does Crude Oil Affect Gas Prices?
Find out how this commodity's fluctuating price affects more than just how much you pay at the pump. 
Economics
Meet OPEC, Manager Of Oil Wealth
This organization's decisions can influence oil prices, but there is a limit to its power. 
Fundamental Analysis
Understanding the Profitability Index
The profitability index (PI) is a modification of the net present value method of assessing an investment’s attractiveness. 
Economics
What is Neoliberalism?
Neoliberalism is a littleused term to describe an economy where the government has few, if any, controls on economic factors. 
Fundamental Analysis
Explaining the Monte Carlo Simulation
Monte Carlo simulation is an analysis done by running a number of different variables through a model in order to determine the different outcomes. 
Chart Advisor
3 Ways To Trade The Bounce In Coal
News from the Supreme Court has caused active traders to turn their attention to the coal markets. We'll take a look at how to trade the bounce.