What is the average annual rate of depletion of global reserves for liquid fuels, natural gas, and coal assuming no new reserves and no increase in annual production/consumption levels?
What will be an ideal response?
From Example 8.2 and Table 8.4. Note that technically Qn (our ending quantity) should be 0; however, if we use 0 in the numerator for this formula, we get an illogical CAGR of 100%. By using a Qn of 1 (a minute quantity in this context), we can arrive at a more meaningful number.
Liquid fuel reserves deplete at an average annual rate of 44.9%. Natural gas reserves deplete at an average annual rate of 42.2% Coal reserves deplete at an average annual rate of 19.6%.
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What will be an ideal response?
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