This appears to contradict the normal distribution model of steady depletion of oil reserves. In fact, the reserves are depleted exponentially and need to be tracked individually rather than collectively. This individual tracking can be accomplished by disaggregating the reserves into individual reserve units. The derived model shows that maximum petroleum reserves have yet to be determined. This is particularly a problem when dealing with natural processes since production of oil depletes its reserve exponentially.
Demand is dynamic and behaves peculiarly, depending on the direction and frequency of price changes.
In order to derive an equation of exponential decline for oil reserves we must first define terms. This equation requires the decline rate, D k , be positive. In order for D k to be positive the term must produce values between 0 and 1. It is intuitively impossible for equation A-9 to be negative since the original endowment provides sufficient reserves to prevent p k from beginning negative. The Center for Business and Economic Services and the Sorrell College of Business invite our readers to submit articles for publications in the Review .