Crude Oil: how high can it go? (19th century whaling as a model for oil depletion and price volatility)

Posted: June 3rd, 2008 | Author: Steve | Filed under: Peak Oil | Tags: Energy, Oil, PeakOil, resource depletion, whaling | View Comments

Whale oil production and prices (adjusted for inflation)

Ugo Bardi presents a nice example of Hubbert’s Curve in action, showing pricing and depletion for a resource different from crude oil: whale oil and bone in the 19th century.

Although whale is technically a “renewable” resource, Bardi explains that it behaved like a non-renewable resource because it was hunted at a much higher rate than it could be renewed. Even though whale oil and bone was nowhere near as crucial to 19th century life as crude oil is to 21st century life, there is a clear parallel between the pricing behavior of the two.