“By agreeing to reduce oil imports and exports by a specified amount each year, about 2.6 percent, signatory nations will help mitigate the negative consequences of an over-reliance on cheap oil and help prepare for a global decline in the world’s oil supply.
The premise of the Protocol is inherently straightforward: oil importing nations would agree to reduce their imports by an agreed-upon yearly percentage, referred to as the World Oil Depletion Rate, while oil producing nations would agree to reduce their rate of production by their National Depletion Rate.
This simple and sensible formula will produce, in effect, a global rationing system. If the entire world adopted the Protocol, global consumption of oil would decline by almost 3 percent per annum, thus stabilizing prices, preserving the resource base, and reducing competition for remaining supplies.”
