The escalating cost of energy is palpably affecting various aspects of daily life, most visibly in rising gasoline prices that have come a long way from their comparatively low levels a decade ago. This surge in energy costs is not just squeezing consumers at the gas pump, but also driving up the prices of goods and services across the board.
Businesses are adjusting their pricing models to account for these increased energy expenses, leading to a noticeable uptick in the cost of everyday essentials like food and clothing.
The visible symptoms of high energy prices are clear, and they are having a detrimental effect on consumers and businesses alike. The cost of energy is one of the leading causes of economic inequality, and it is essential that we understand the underlying systems driving these high prices in order to bring about meaningful change.
The Iceberg Model is a systems thinking tool used to understand the complexities of real-world problems. It suggests that the visible symptoms of an issue are only the "tip of the iceberg," and that one must look deeper to understand the underlying patterns, systemic structures, and mental models that contribute to the problem. Below is an analysis of the problem of high energy prices using the Iceberg Model framework:
The underlying systems driving energy prices are complex and varied. Market forces, policy decisions, and geopolitical events all play a role in determining the cost of energy. Understanding these systems is important in order to effectively address the issue of high energy prices.
Understanding a problem through the lens of the Iceberg Model helps stakeholders to address not just the symptoms but also the underlying causes and contributing factors, enabling more sustainable and effective solutions.
Alan is a Consulting Petroleum Reservoir Engineer with 20+ years of international industry experience. Alan is the founder of CrowdField, a marketplace that connects Oil & Gas and Energy businesses with a global network of niche talent for task-based freelance solutions. His mission is to help skilled individuals monetize their knowledge as the Energy transition unfolds, by bringing their expertise to the open market and creating digital products to sell in CrowdField's Digital Store.
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