You are currently browsing the category archive for the 'oil shock' category.

For Sale - To Let signsThe Petro Razor: one of the useful precepts to come out of World Without Oil. In the game, once the global oil shock began, the Petro Razor went to work slicing away the things that depend on oil. And then the things that depended on the things that depend on oil. And then the things that depend on the things that depend on the things, etc. And it cuts away with an inexorable logic all its own. As Inky_Jewel put it: “The Petro Razor is trying to shave us clean. But nobody knows how to use it right, so it keeps cutting us instead.”

Here in the real world, the Petro Razor is also busy. I think a lot of its work has been masked by the subprime mortgage crisis, and certainly the two are working together to cruel effect. But hearing about the rise in abandoned pets and children’s activities being cut and people hiring hoods to torch their gas guzzlers and people setting fire to gas stations in protest and so on, sounds to me like the keen snick-snick-snick of the Petro Razor. Photo by I See Modern Britain via Flickr.

Friday wrapup: a month’s worth of headlines. They could all be part of the World Without Oil game (and many are dead ringers for ones that were) but no, they’re from our local paper, the San Jose Mercury News. Read ‘em and weep, as they say… (thanks Deb for the clipping services)

A month\'s worth of World Without Oil

"You Know It's Not Good For You. You'll Cut Back Someday."Alert reader Cathy sent me the link to this article by Damien Cave which begins: “Higher fuel prices are forcing cities across the country to cut public services, limit driving by employees and expand public transportation in what has become a sprawling movement to conserve energy.” The article goes on to cite that 90% of 132 cities surveyed are altering operations in response to higher fuel costs. This forced cutback in public services was a big item in the WWO game: almost every service a city offers consumes fuel, and cities draw up their budgets in advance, so sudden increases catch them flatfooted (as we’re seeing now).

But the article goes on to quote the mayors at the conference: “some of them also acknowledged that higher gasoline prices could eventually make their cities bigger, better and richer.” The mayors are reporting transit use is up, the movement to resettle pedestrian-friendly downtown is accelerating, and new interest in bike lanes.

In Newsweek, Robert J Samuelson acknowledges that the equivalent of Peak Oil is here - demand has outstripped supply - and quotes economist Jeffrey Rubin of CIBC World Markets as saying that this will help U.S. manufacturing: no longer can jobs go overseas with such impunity. Relocalization works for manufacturing as well as food. Indeed, I’ve already read of a case where IKEA moved a manufacturing plant to the U.S. for this reason - it was cheaper to build bookcases here than to ship them in from elsewhere.

Samuelson can’t see past the current infrastructure, unfortunately, but the Economist can. In their most recent issue, entitled “The Future of Energy,” the editors cite this “failure of imagination” as the key to our problem with energy. They put forward instead ideas for “a world where, at one level, things will have changed beyond recognition, but at another will have stayed comfortably the same, and may even have got better.”

What patently doesn’t work is to cling to a wasteful system that’s loaded with problems and is incontrovertibly beginning the decline of its useful life. To quote the out-of-game “addiction” teaser for World Without Oil: “You know that it’s bad for you. You’ll cut back someday.” More drilling and more wars are the addict’s groping for one more fix: they solve nothing and don’t change the fundamental forces at work.

As the effects of high fuel prices play out around the world, many people are commenting on the predictive power of the World Without Oil game – and it is remarkably eerie to see the events described by WWO players appear in real-life headlines and news stories.

But the real power of the game, I feel, goes beyond anticipating external events – i.e., telling the external truth of our relationship with oil. The real power is in activating internal truth: enabling people to see events and understand their connection to petroenergy. To pirate an old saying, telling external truths is giving people a fish, i.e. feeding them for a day; enabling internal truthtelling is by TrekkyAndyteaching them how to fish, i.e., feeding them for life.

As an example, let’s look at a comment to the previous post by WWO player PeakProphet: he relates his experience trying to find a home for two abandoned puppies. This is not a story that on its face has anything to do with oil. But once he scratches the surface we see it has everything to do with oil: $4.50 gasoline has really impacted people in rural areas; many families are seriously stretched; pets are expendable. And PeakProphet knows from the WWO game that the oil crisis burden will not fall equally, that alas it will fall mostly on anyone less able to scramble out from under it: the poor, the sick, the stretched, and yes, the defenseless family pet. From two half-starved puppies we come to see an entire region overloaded with abandoned pets, and thus we begin to apprehend the ways in which our oil crisis has already kicked the legs out from under so much that we take for granted. “Tiny Little Kitten” by TrekkyAndy via Flickr.

fuel shortages“Americans are angry about the economy, I’ve come to believe, in a new and profound way…. our anguished cries may be fueled by our unwillingness to accept an unmistakable message the economy is now sending us: We must fundamentally change our behavior.” From a column by Chris O’Brien in Sunday’s San Jose Mercury News. He goes on to prescribe the ‘casserole economy’: “Simplify. Have more discipline. Begin to do the things you’ve known all along you should be doing, but haven’t either out of denial or inertia or because cheap gas allowed you to avoid them.” He quotes Kit Yarrow, economic psychologist at Golden Gate University: “Oddly enough, I think there is a huge silver lining. I think people will be less wasteful.” And Chris calls for government leaders to restore our tattered social safety nets and to galvanize the Victory Gardens of the 21st century.

In short, he sounds just like the voice of experience talking about the lessons of World Without Oil.

This is the point, folks, where the World Without Oil game wants to cease being prophetic. We were supposed to play it first, then live it differently. As the next stage of the crisis looms ahead, let’s focus hard now on that “differently” part.

by DigitalHowie via FlickrI’m mulling this morning over the similarities between the subprime mortgage crisis and the high fuel price crisis. Both strike me as little garden paths that the unwary were led along, by people willing to make a buck over the inability of others to visualize the future.

In both cases, people were sold a dream of the unaffordable made affordable, and sold the products that go with it: big new homes in the suburbs and plush low-mpg vehicles to make their long commutes comfortable. Now however the payment rates are being radically readjusted and the balloon payments are coming due. The purveyors of this dream - the subprime lenders of U.S. energy policy, the oil and auto companies and others aided and abetted by a subprime administration – are escaping with their gains and leaving people made destitute by their deception.

What’s needed is action that materially reduces our dependence on oil forever - higher fuel efficiency, plug-in hybrids, alternative energy. Solutions such as drilling for more oil are merely a continuation of the cruel deception. For starters, it will take about 10 years for any new well to actually produce any oil – no help whatsoever to those being squeezed hard right now by high fuel prices. But the main point is: more oil, from any source, amounts to no more than taking out a second mortgage on a subprime energy policy, something that only puts the inevitable foreclosure off another year or two.

Photo by DigitalHowie via Flickr. Click through for his narrative that sounds eerily like World Without Oil. All rights reserved by DigitalHowie.

Interactive graphic - New York TimesClifford Krauss is living World Without Oil, but it’s no game. Clifford wrote an article that appeared yesterday in the New York Times. It’s about the effects of high gasoline prices on rural areas in the U.S., where people are reeling under the triple strike of low incomes, fuel-inefficient vehicles, and long commutes to work. Folks, you have to read this article: this is not fiction, this is really happening.

Cars abandoned at the side of roads. A man loses his truck because he couldn’t afford the payments and the fuel.  People eating less meat, giving up video rentals to buy gas. People forced to choose between food and transportation. People praying to God for lower fuel prices. People unable to afford the transportation cost to get medicines. People defaulting on their electric and phone bills. People quitting jobs because working less is the economically rational choice: all the wages just go down the fuel spout.

And the ripple effects: stores and restaurants closing. Layoffs. Theft rising. Local governments abandoning services. A new calculus is at work to define the haves and have-nots: the Petro Razor. Fissures are appearing along the lines that WWO foresaw. 

 

Urban Observatory01SJ began last night with giant tentacled aliens invading City Hall, so you can only imagine how sorry I am not to be there. World Without Oil did its part in the festival opening, receiving an honorary mention for “making a sustainable difference by challenging the norm and melding ideas, art and technology” in the Green Prix Award for Environmental Art sponsored by Salas O’Brien. If you’re in the San Jose area this week, check out 01SJ. Photo by cookieevans5 via Flickr.

at the New Yorker Conference \If you want to get a solid picture of what World Without Oil signified to the world, listen to WWO’s participation architect, Jane McGonigal, at the New Yorker conference earlier this month, “Stories from the Near Future.”

What Jane’s saying is that games have turned a corner from Escapism to Engagement (not just WWO, but it’s perhaps the most potent example) and… well, she tells it way better than I do, so check out the vid.

photo by Michallon via FlickrThanks, John Thackara, for alerting me to the City Eco Lab being planned for November, in st. Etienne, France. City Eco Lab are “design steps to a one-planet economy”: by demonstrating a full range of projects that rethink a city’s consumption of fuel, food, energy, water, etc., CEL moves the focus beyond an individual’s choices to the systems that citizens depend on for their livelihood. It’s a really great idea and one that should be extended to cities in the U.S. and elsewhere.

Is it possible, however, that an oil crisis will strike St. Etienne even as the City Eco Lab gets underway? And citizens of St. Etienne will be phoning in reports live as the crisis progresses? It’s certainly possible, given the current state of fuel protests spreading like wildfire across Europe. And it’s possible in a WWO sense too (and maybe you can help). Stay tuned.  Photo of St. Etienne tram by Michallon via Flickr

People surging into cars in a transit stationThis just in from Jane McGonigal (otherwise known as mPathyTest) who’s in New York for the Stories From The Near Future conference: an article in the New York Times titled “Gas Prices Send Surge of Riders To Mass Transit.” Apparently, gas prices are motivating people to take transit in record numbers, catching transit planners by surprise. “Nobody believed that people would actually give up their cars to ride public transportation,” says the executive director of the South Florida Regional Transportation Authority. “The whole NYT article reads like a KalWithoutOil report,” Jane says.

The biggest surges are occurring in metro areas in the South and West – the very strongholds of American driving culture. The article says Denver ridership is up 8%, for example, and several routes now run at capacity at rush hour.

Now this is no surprise to WWO players. Player Ararejul explicated this very situation in her video posted from Denver, titled “Is Public Transportation Ready?” Posted over a year ago, I might add. “This was the first thing our players predicted and documented when gas hit $4 a gallon,” Jane notes. “Dude, WWO seriously worked as a forecasting device.” One that looked not to the past for answers, nor to experts, but to the future and the collective imagination.

Photo by caribb via Flickr.

….possible within two years, says Sachs Goldman via Bloomberg and widely reported. Folks, less than a year ago “$200 a barrel” was shorthand for catastrophe. Witness our fellow simulation, OilShockwave, which in September 2007 posited a global geopolitical crisis precipitated by oil at $150 a barrel.

photo by Lex in the City, via Flickr. Thanks Lex!An article by John Wilen in the Business section today talks about how airlines are slowing down to save fuel. Meanwhile, Gary Richards, our local reporter on commute and traffic, advises his readers to stop whining about fuel prices and slow down - by his calculation, dropping one’s speed from 75 to 60 mph is like paying 30 cents less per gallon at the pump.

These articles bring out another finding of the World Without Oil game – that oil = speed. Americans consume an inordinate amount of oil largely because we don’t like to wait - for the bus or the train, for example, or for that cool new weight machine we ordered online. 747s fly everywhere loaded with cargo that could be sent vastly more efficiently by boat or train.

But of course, paradoxically, we also don’t like to be forced to rush all the bloody time. WWO people were quick to pick up on this silver lining to the dark cloud. Here, listen as Avantgame explains it in a phone call from Berkeley – recorded during Week 17 of the Oil Crisis of 2007. Or download the MP3:

The Upside to Slowing Down, by Avantgame

Photo by Lex in the City via Flickr.

Suddenly everyone’s talking about it: rice rationing in the USA. Coming seemingly from nowhere, although that’s just a bit of American myopia. The faulty rationales behind food-based fuel have been apparent to some from the start, and WWO player GailTheActuary laid them out pretty clearly in this post back during the game. But it’s still strange to see this sort of unintuited ramification of oil addiction burst onto the scene – it’s in eerie parallel to the World Without Oil game itself, when this sort of thing occurred every day. As we approach the first anniversary of the start of the oil shock, it’s preja-vu all over again. (Thanks Marie)

Continuing a theme I started in January - is the WWO scenario coming true, but slowly? In the news today: retail sales sink as consumers wrestle with rising fuel and food prices; GM announces gas-guzzler incentives to try to move stock in the face of an industrywide slump; major airline shakeup brewing, in the wake of plunging share prices due to skyrocketing fuel prices; and the foreclosure crisis in suburbs continues. These are all headlines pulled right out of the events in last year’s World Without Oil oil crisis scenario.

Also today, Congress approved an economy boost package of $152 billion. Compare that dollar figure with the estimated economy drag of last year’s oil price hikes - $150 billion, as reported earlier here. In other words, the  boost is calibrated to counter the  damage being done by last year’s oil prices. What will happen this year? Sooner or later, we’re going to stop being able to spend our way out of the problem, and will need to address the underlying causes.

The price of oil surged over $100 a barrel today. That’s not really news, since it’s been hovering near there for weeks. A report questions OPEC’s ability to meet the world’s long-term demand for oil. That’s not really news, since various reports have been doing that for years, except that this report comes from OPEC itself. And airlines are pulling out the stops to save fuel, even to the point of lightening drink carts (how long before they start doing away with drink carts altogether?), because fuel costs have risen from one-quarter of airline operating costs to one-third in less than a year. The high fuel prices are starting to pull airlines into bankruptcy.

I can go on, citing growing violence in Nigeria, record unanticipated petroleum stock depletion in the US, unexpectedly high oil demand in China – but WWO players already get the point. It’s like the World Without Oil scenario is coming true, but slowly, slowly, so as not to wake the frog dozing uneasily in its overwarm bath.

The oil crisis is on, and the country is in disarray. Parts of the country are unaffected, while others stagger under rationing, long queues, the collapse of public transit, and eruptions of violence at gas stations. More and more gas stations ignore government mandates, and the black market is burgeoning.

Sound like World Without Oil  to you? Me too. But it’s not fiction: it’s happening right now in China, according to this article in The Economist, November 22. Unwilling to curb demand, or even to raise prices at the pump, China is forcing itself to get more oil. Whose?

Dick Gordon, host of The StoryToday on The Story, the subject is “oil games.” It’s worth a listen: go here and click the “LISTEN HERE” icon at top right to grab the MP3.

The first segment of the radio show from American Public Media deals with a simulation called “Oil Shockwave” put on by SAFE (Securing America’s Future Energy) in early November. I think that WWO followers will find it very interesting - and eerily alarming in its familiarity. “We found that once the crisis has started, there’s not much that the government can do…” The second segment is all about World Without Oil, and it’s a good summary of what the game was all about. Featuring starring roles by Rocklobster and other players! Thanks to Cori Princell and host Dick Gordon of The Story, and to North Carolina Public Radio - WUNC where the show is produced.  And to bloggers like Annette in Anaheim who are already picking up on and amplifying the story.

Alan Greenspan: “I am saddened that it is politically inconvenient to acknowledge what everyone knows: the Iraq war is largely about oil.” From his book The Age of Turbulence, as reported in the Guardian and widely elsewhere. Greenspan’s comment follows an article by George Packer in the Sept 17 New Yorker that quotes David Kilcullen, a top advisor to General Petraeus, as listing “maintain flow of oil and gas” as the #1 objective for the continuing operations of U.S. forces in Iraq - ahead of fighting Al Qaeda, containing Iran, or preventing Iraqi genocides.

World Without Oil made clear what’s at stake with continued access to petroleum energy. The official reason for the war seems to change monthly… WMDs, democracy, freedom, anti-terror - it seems to be anything BUT oil.

The price of crude oil closed above $80 a barrel for the first time on Thursday, as a hurricane in Texas raised supply concerns. US light crude hit $80.20, two cents higher than the price it touched on Wednesday. Oil prices have risen 30 per cent since the start of this year and are four times higher than their 2002 level.

The latest figures from the US Energy Information Administration show that global liquid fuels production in August was almost a million barrels per day lower than the same period in 2006.

Lord Oxburgh, one of the most respected names in the energy industry, said a rapid increase in the price of oil was inevitable as demand continued to outstrip supply. He said: “We can probably go on extracting oil from the ground for a very long time, but it is going to get very expensive indeed.”

As reported in The Independent today.

RELIEF

July 12, 2007
Futurology and training

The future belongs to that which has the longest memory. (Friedrich Nietzsche)

“The Internet projects that obtain the financial support of established organizations undergo a process of selection which is not unlike that of a book. On the other hand, they are characterized by their originality, considering the metamorphic nature of the media. World Without Oil got my attention precisely by the uniqueness of its concept: to ask young people to publish imaginary reports over the weeks following an oil shortage, an event with multiple economic, social and environmental consequences. The result is of an astonishing quality. The participants determined the essence of a complex subject…”

Thus begins an essay by François Guité in RELIEF. The essay is in French, so break out your favorite Babelfish.

I heard WWO players in Europe refer to “the events in 2000″ but I never knew what they were, until I read this. If you run into people who don’t believe that the events of WWO are anything close to possible, have them read this story by Kathy McMahon. All the more scary if you remember that Britain’s oil fields hadn’t yet declined in 2000. This all happened back when it was an oil-producing nation.

It was the world's first serious alternate reality game, a cooperative pre-imagining of a global oil crisis. Over 1900 players collaborated in May 2007 to chronicle the oil crisis with their own personal blog posts, videos, images and voicemails. The game ended after simulating the first 32 weeks of the oil shock, but its effects continue, as game designers analyze its unique gameplay and we all watch the continuing drama with global oil prices and supply.