The depletion of UK oil resources

The oil reserves of the UK may be regarded as an asset whose rate of return will depend on future oil price movements and cost developments. The profits on depleted oil may be invested in assets above the ground. An optimal depletion policy is one which maximizes the rate of return on oil both as an asset below the ground and as an asset above the ground. On the assumptions made, it is shown that such a policy implies a rapid depletion profile.