ABSTRACT
The optimum time-distribution of use of petroleum resources requires (a) an optimum time-distribution of production from each reservoir and (b) an optimum allocation of labor, capital, and other natural resources to the exploration for and development of new reservoirs. For the latter requirement to be satisfied, those engaged in exploration and development must expect that the former requirement will be satisfied in all new discoveries. Consequently, I shall begin my examination of the optimum time-distribution of use by discussing the nature and determinants of the optimum time-distribution of production from a given reservoir in terms of the optimum rate of production from the reservoir at any time. The purpose is to clarify the fundamental basis of petroleum conservation regulation.
