system dynamics  
At Any Rate

by Bill Harris

Model 5, January 2003

Out of Gas: A Systems Perspective on Potential Petroleum-Fuel Depletion

It's 2:30 in the afternoon on June 18, 2050, and the streets outside my downtown apartment are quiet. At the turn of the century, as I was a kid, I would have been bothered by the noise of traffic. Even in 2010, the year before things started going bad, traffic would have been a big deal, for I was then commuting daily and griping about the congested streets and highways.

Today, all I see are a few people on bikes, others on foot, and one or two rich people on the Segway™ Human Transporter. Oh, you still see cars everywhere; it's just that none of them run anymore. There's precious little gasoline to be had on the open market. Most cars are parked in driveways and garages, but some were just left on the side of the road when they ran out of gas; the law said it was illegal to waste gas to tow them away.

"What happened?" you ask. Around the turn of the century, a second wave of pundits cried that we were running out of crude oil, but no one really paid attention until 2011, when shortages began to develop. People were still debating whether to open up more protected land for drilling in the interest of national security, and that debate lasted until 2015, when the new president initiated a crash program to solve the energy crisis. The program had two components: 1) conserving existing fossil fuel resources and 2) developing new technologies. But the country spent almost a decade wrangling about whether automobiles, mass transit, or airplanes would get the majority of the fuel, so nothing much happened until the wells literally began running dry in 2025. By then, it was far too late.

It took too much time and money to generate and deploy new technologies once the wells began to run dry, and society gradually reconciled itself to the new order. With little fuel for vehicular transportation, most people returned to walking, biking, and riding horses, with limited mass transit within major metropolitan areas served by hydroelectric power and between major cities by electric train. As a result, commerce slowed in the United States and was practically eliminated between continents.

The decline in transportation hit countries in what had once been called the developed world equally, and they devolved into an agrarian society. There had been hopes for a knowledge economy, but that turned out to be a chimera in the absence of an existing manufacturing economy.

OPEC members didn't fare much better. Once their major natural resource, crude oil, ran out, they had to turn to agriculture as well. In many ways, what once were termed developing, emerging, or third-world economies fared the best. It's not that they thrived, but at least they didn't tumble. They remained largely as they had been in the middle of the 20th century, although with more mouths to feed and little modern technology available, they placed greater emphasis on employing everyone in the fields.

******

This story is obviously a fantasy—or perhaps a nightmare. Will it be our future? Likely not, for few predictions come true exactly as they are made, and we certainly don't wish this one on ourselves or our descendents. But the potential depletion of petroleum-based fuels is in the news again, and it's instructive to think about how we can avoid the systemic effects that could lead to such a situation.

Note the sequence that got us into trouble in this scenario:

1. We ignored the problem for a dangerously long time. When we're comfortable with the status quo, it's easy to ignore signs that the future may change.

2. When we did acknowledge the problem, we spent valuable time arguing about how to maintain the status quo longer rather than focusing on alternative futures.

3. A reinforcing loop (the use of crude oil leads to increased GDP, which leads to increased numbers of automobiles, which leads to increased crude-oil usage) kept the economy going. Once we broke that loop by depleting our supply of crude oil, we had difficulty reviving the economy with new sources of energy.

The moral of the story? I'm not suggesting hasty action or sloppy thinking, but I do believe we need to become better at recognizing the existence of such problems and at managing the transitions they cause by using a systems perspective. You can explore this scenario in the attached model.

Acknowledgements
Thanks to Gary Long of the U.S. Energy Information Administration for insights used in the refinement of this model.
 

Using the Model
To use the model, you'll need to download two files—the "current model" and the "isee Player" (the ithink® Runtime for the At Any Rate model series) that runs the model. Both are located in the "Get" section toward the top of the right-hand column. You'll then need to install the isee Player on your computer. (Once you have installed the isee Player on your computer, you no longer have to go through this process unless the reader is updated.)

1) Download the "Current Model"
• Click "Current Model."
• Choose "Save this file to a disk" and click "okay."
• In "Save As," save the ITR file to your desktop (or to a folder of your choosing).

2) Download and install the "isee Player"
• Follow the instructions on the isee Systems site.
After you install the isee Player, to run the model, you can go to your desktop and double-click on "model1.itr" or start the ithink® program and use the "file open" command to locate and open the model1.itr file.

You are ready to begin. Feel free to play with the model. We've put more content in it than we've described in this column. Try different things. If you've got an interesting idea, a question, or a comment, go to our Pegasus Forum. We'd enjoy hearing from you.
 

This learning lab was developed using the ithink® software, a computer simulation modeling package developed and distributed by isee Systems.

About
At Any Rate 
Bill Harris
iThink software

 
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Dialogue

At Any Rate Pegasus forum
 

Related links

John Wood and Gary Long's presentation on long-term world oil supply, from the U.S. Energy Information Administration

U.S. EIA Annual Energy Review, which includes worldwide data
U.S. EIA's Interactive Data Query System 
M. King Hubbert Center for Petroleum Supply Studies
Hubbert Peak of Oil Production


Resources
Systems Thinking
System Dynamics
Causal Loop Diagrams
Systems Archetypes



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