The current revelations of a International Energy Administration whistleblower that the IEA might have misshaped key oil forecasts under extreme U.S. pressure is, if true (and whistleblowers rarely step forward to advance their professions), a slow-burning thermonuclear surge on future worldwide oil production. The Bush administration's actions in pressuring the IEA to underplay the rate of decline from existing oil fields while overplaying the chances of finding brand-new reserves have the potential to throw governments' long-lasting preparation into mayhem.
Whatever the truth, rising long term worldwide demands appear certain to outstrip production in the next decade, particularly provided the high and rising costs of developing new super-fields such as Kazakhstan's overseas Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will require billions in investments before their very first barrels of oil are produced.
In such a circumstance, ingredients and substitutes such as biofuels will play an ever-increasing function by stretching beleaguered production quotas. As market forces and rising rates drive this technology to the forefront, one of the wealthiest prospective production areas has actually been completely ignored by investors already - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to end up being a major gamer in the production of biofuels if sufficient foreign financial investment can be obtained. Unlike Brazil, where biofuel is produced largely from sugarcane, or the United States, where it is mostly distilled from corn, Central Asia's ace resource is a native plant, Camelina sativa.
Of the previous Soviet Caucasian and Central Asian republics, those clustered around the coasts of the Caspian, Azerbaijan and Kazakhstan have actually seen their economies boom since of record-high energy rates, while Turkmenistan is waiting in the wings as a rising producer of natural gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and fairly scant hydrocarbon resources relative to their Western Caspian next-door neighbors have actually largely prevented their ability to capitalize increasing international energy needs up to now. Mountainous Kyrgyzstan and Tajikistan remain mainly reliant for their electrical needs on their Soviet-era hydroelectric facilities, but their heightened need to create winter season electrical power has led to autumnal and winter water discharges, in turn significantly impacting the agriculture of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these three downstream nations do have however is a Soviet-era tradition of agricultural production, which in Uzbekistan's and Turkmenistan case was mainly directed towards cotton production, while Kazakhstan, beginning in the 1950s with Khrushchev's "Virgin Lands" programs, has actually ended up being a major manufacturer of wheat. Based upon my conversations with Central Asian federal government officials, provided the thirsty demands of cotton monoculture, foreign propositions to diversify agrarian production towards biofuel would have terrific appeal in Astana, Ashgabat and Tashkent and to a lesser level Astana for those durable investors happy to wager on the future, particularly as a plant native to the area has already proven itself in trials.
Known in the West as false flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is drawing in increased clinical interest for its oleaginous qualities, with numerous European and American business currently examining how to produce it in industrial quantities for biofuel. In January Japan Airlines carried out a historical test flight utilizing camelina-based bio-jet fuel, becoming the first Asian carrier to try out flying on fuel originated from sustainable feedstocks during a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the conclusion of a 12-month examination of camelina's operational performance ability and possible commercial viability.
As an alternative energy source, camelina has much to advise it. It has a high oil content low in saturated fat. In contrast to Central Asia's thirsty "king cotton," camelina is drought-resistant and immune to spring freezing, needs less fertilizer and herbicides, and can be utilized as a rotation crop with wheat, which would make it of particular interest in Kazakhstan, now Central Asia's major wheat exporter. Another bonus offer of camelina is its tolerance of poorer, less fertile conditions. An acre planted with camelina can produce as much as 100 gallons of oil and when planted in rotation with wheat, camelina can increase wheat production by 15 percent. A heap (1000 kg) of camelina will consist of 350 kg of oil, of which pressing can extract 250 kg. Nothing in camelina production is lost as after processing, the plant's debris can be used for animals silage. Camelina silage has an especially appealing concentration of omega-3 fatty acids that make it an especially fine animals feed prospect that is recently acquiring recognition in the U.S. and Canada. Camelina is quick growing, produces its own natural herbicide (allelopathy) and competes well versus weeds when an even crop is developed. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina might be an ideal low-input crop suitable for bio-diesel production, due to its lower requirements for nitrogen fertilizer than oilseed rape."
Camelina, a branch of the mustard household, is indigenous to both Europe and Central Asia and hardly a brand-new crop on the scene: historical evidence suggests it has actually been cultivated in Europe for a minimum of three centuries to produce both veggie oil and animal fodder.
Field trials of production in Montana, presently the center of U.S. camelina research study, revealed a wide variety of outcomes of 330-1,700 lbs of seed per acre, with oil material varying between 29 and 40%. Optimal seeding rates have actually been determined to be in the 6-8 pound per acre range, as the seeds' small size of 400,000 seeds per lb can create problems in germination to achieve an ideal plant density of around 9 plants per sq. ft.
Camelina's capacity could allow Uzbekistan to start breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has deformed the nation's attempts at agrarian reform since achieving self-reliance in 1991. Beginning in the late 19th century, the Russian government identified that Central Asia would become its cotton plantation to feed Moscow's growing fabric market. The procedure was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also ordered by Moscow to sow cotton, Uzbekistan in specific was singled out to produce "white gold."
By the end of the 1930s the Soviet Union had become self-sufficient in cotton; 5 years later it had ended up being a significant exporter of cotton, producing more than one-fifth of the world's production, concentrated in Uzbekistan, which produced 70 percent of the Soviet Union's output.
Try as it might to diversify, in the lack of alternatives Tashkent stays wedded to cotton, producing about 3.6 million lots annually, which brings in more than $1 billion while constituting around 60 percent of the country's hard cash earnings.
Beginning in the mid-1960s the Soviet government's instructions for Central Asian cotton production largely bankrupted the region's scarcest resource, water. Cotton uses about 3.5 acre feet of water per acre of plants, leading Soviet planners to divert ever-increasing volumes of water from the region's two primary rivers, the Amu Darya and Syr Darya, into ineffective irrigation canals, leading to the significant shrinkage of the rivers' last location, the Aral Sea. The Aral, once the world's fourth-largest inland sea with a location of 26,000 square miles, has actually shrunk to one-quarter its initial size in one of the 20th century's worst environmental disasters.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently explained camelina's service design to Capital Press as: "At 1,400 pounds per acre at 16 cents a pound, camelina would bring in $224 per acre; 28-bushel white wheat at $8.23 per bushel would amass $230."
Central Asia has the land, the farms, the irrigation infrastructure and a modest wage scale in contrast to America or Europe - all that's missing out on is the foreign investment. U.S. financiers have the money and access to the competence of America's land grant universities. What is particular is that biofuel's market share will grow over time; less specific is who will reap the benefits of developing it as a practical issue in Central Asia.
If the current past is anything to go by it is unlikely to be American and European investors, fixated as they are on Caspian oil and gas.
But while the Japanese flight experiments show Asian interest, American investors have the academic expertise, if they want to follow the Silk Road into developing a brand-new market. Certainly anything that decreases water usage and pesticides, diversifies crop production and improves the lot of their agrarian population will receive most cautious consideration from Central Asia's federal governments, and farming and grease processing plants are not only more affordable than pipelines, they can be built quicker.
And jatropha's biofuel potential? Another story for another time.