Fragility of oil as a critical infrastructure problem

Abstract Interdependences between critical infrastructures are becoming increasingly apparent. The 21st century has been defined by events that have changed perceptions about critical infrastructures and their fragility in the face of the inherent risks and vulnerabilities. A major critical infrastructure is the energy sector, of which oil is an important component. This paper explores the systemic interrelationships between oil and other infrastructures and the implications for future design, analysis and development of oil systems within the energy critical infrastructure. The paper argues that the relationships between oil and other elements of the critical infrastructure have significant implications for the structure of the oil industry due to increasing interdependence. Understanding how to manage the new oil industry structure is an emerging issue that can be examined from a systems view. Whether oil is in its crude or refined form, its value cannot be minimized due to its numerous applications and global importance as an energy source. However, oil and its derivatives do not exist as an independent infrastructure and cannot be considered in isolation from other critical infrastructures. Indeed, oil is inextricably interconnected to other forms of energy and other infrastructures. These interconnections introduce increased risks and vulnerabilities. The conclusion is that oil is – for the foreseeable future – critical to the wellbeing of society. It is a fragile interdependent component of the energy sector and, regardless of political proclivities and the desire for alternative forms of energy, oil must be viewed as a primary energy asset of the fossil-fuel-based global economy.