The "Model to Describe Fungibility" was built as a hands-on educational tool for public use in an effort to illustrate the concepts of fungibility as well as supply and demand related specifically to the energy industry. The need for such a model came as a response to public concern over international issues and their connection to the energy industry. This visual representation of the fungible nature of energy provides a more comprehensive understanding of how and why certain actions affect or do not affect global markets. Although extremely simplified, the model clearly illustrates that as long as the world inventory of energy is constant, the origin of the commodity is insignificant to the consumer. Disruption to the quantity and price of an inventory is a direct result of any change to the amount of supply or demand. Thus there is an evident balance between the amount of energy available and the amount of energy consumed. The contribution of "green energy" and the "strategic petroleum reserve" are also considered in the operation of this model. "Green energy" contributes a mere trace of energy to the energy mix and therefore, as the model indicates, becomes virtually indistinguishable as it mixes with the contribution from fossil fuels. As the strategic reserve is used, it is clear that this is a finite resource and is non-replaceable. Altering the flow of water by means of adjusting faucets that represent energy production and consumption is the method of operating this model. Concepts discussed above are visually observed in an effective manner. The model is appropriate for all audiences ranging from elementary school children to government officials.

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