- 9:52 am - Tue, Sep 25, 2012
A great, easy to understand post describing the Export Land Model and the predicament of oil importing nations.
Export Land Model … a simple model that seemed to explain a lot. Here’s how he set up his first case: Brown assumed that a hypothetical oil exporter—which he designated as Export Land—had reached its peak in oil production. He assumed that domestic users in Export Land consumed half of all the oil the country produced. He then assumed a 5 percent annual decline in the rate of oil production and a 2.5 percent annual increase in domestic consumption. The results astonished and troubled him. In just nine years oil exports from Export Land went to zero.
He then tried the model out on two real world examples, the United Kingdom and Indonesia…
Click here to read the full post.
If you aren’t on top of current oil production and export topics or resource scarcity in general, then I highly recommend reading it. It’s short, to the point and will give you a deeper understanding of one of the primary issues facing the global economy.