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 Says:

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.

Related Links:
Yields in excess of 10% aren't rare, but these unique investments need to be chosen very carefully. An Introduction To Canadian Income Trusts
Find out how this commodity's fluctuating price affects more than just how much you pay at the pump. How Does Crude Oil Affect Gas Prices?
More than 70 years after his death, this man remains one of the great figures of Wall Street. J.D. Rockefeller: From Oil Baron To Billionaire
This organization's decisions can influence oil prices, but there is a limit to its power. Meet OPEC, Manager Of Oil Wealth
Helping your grandchildren save for college is a way to spoil them and reap some benefits yourself. Spoil Your Grandkids, Cut Your Tax Bill
These funds make investing in gold, oil or grain an easier prospect. Commodity Funds 101

Copyright ©2010, Investopedia.com - Owned and Operated by Investopedia US, A Division of ValueClick, Inc. All rights reserved.