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Unformatted text preview: ion was about to plunge and that
the world was about to run out of oil. Those were all extensions -- unjustified in my view -- on Hubbert's model. Hubbert's formulation addressed
only production rates and wasn't a prediction of the measured levels of global oil reserves. Hubbert's model used a relatively narrow definition of
oil, not surprising in an era when the conventional oil production of Texas, California and Louisiana dominated the U.S. industry. When oil
companies continued to find oil and global reserves and estimates of global reserves continued to climb, peak oil theory took a ding. Then the
global oil industry discovered huge, unconventional sources of oil in the Canadian oil sands and the tight shale formations of first the United
States and then Argentina, China and Europe. That revived production in mature oil-producing countries, such as the United States, and made the
theory look loopy. But to see how useful a peak oil model can be to an investor, look at the latest quarterly results from the big internationa...
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