The current revelations of a International Energy Administration whistleblower that the IEA might have distorted crucial oil forecasts under intense U.S. pressure is, if real (and whistleblowers seldom come forward to advance their careers), a slow-burning atomic explosion on future international oil production. The Bush administration's actions in pressing the IEA to underplay the rate of decline from existing oil fields while overplaying the possibilities of finding new reserves have the prospective to throw governments' long-term preparation into chaos.
Whatever the reality, increasing long term worldwide demands appear particular to overtake production in the next decade, particularly given the high and increasing expenses 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 first barrels of oil are produced.
In such a circumstance, ingredients and substitutes such as biofuels will play an ever-increasing role by stretching beleaguered production quotas. As market forces and increasing rates drive this innovation to the leading edge, among the richest prospective production locations has actually been totally ignored by financiers already - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to end up being a significant player in the production of biofuels if sufficient foreign financial investment can be obtained. Unlike Brazil, where biofuel is made mostly from sugarcane, or the United States, where it is mainly 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 shores of the Caspian, Azerbaijan and Kazakhstan have actually seen their economies boom since of record-high energy costs, while Turkmenistan is waiting in the wings as an increasing manufacturer of gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and relatively little hydrocarbon resources relative to their Western Caspian neighbors have actually mainly inhibited their capability to capitalize increasing worldwide energy demands already. Mountainous Kyrgyzstan and Tajikistan remain largely dependent for their electrical requirements on their Soviet-era hydroelectric infrastructure, but their increased requirement to produce winter electrical energy has actually caused autumnal and winter water discharges, in turn seriously impacting the farming of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these 3 downstream nations do have nevertheless is a Soviet-era tradition of agricultural production, which in Uzbekistan's and Turkmenistan case was mostly directed towards cotton production, while Kazakhstan, beginning in the 1950s with Khrushchev's "Virgin Lands" programs, has actually ended up being a significant producer of wheat. Based on my discussions with Central Asian government authorities, offered the thirsty needs of cotton monoculture, foreign propositions to diversify agrarian production towards biofuel would have great appeal in Astana, Ashgabat and Tashkent and to a lower level Astana for those sturdy financiers happy to bank on the future, specifically as a plant indigenous to the area has currently proven itself in trials.
Known in the West as false flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is attracting increased clinical interest for its oleaginous qualities, with numerous European and American business already examining how to produce it in industrial amounts for biofuel. In January Japan Airlines carried out a historical test flight utilizing camelina-based bio-jet fuel, becoming the very first Asian provider to experiment with flying on fuel derived from sustainable feedstocks throughout a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month assessment of camelina's operational efficiency capability and possible industrial practicality.
As an alternative energy source, camelina has much to recommend it. It has a high oil content low in hydrogenated 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 specific interest in Kazakhstan, now Central Asia's major wheat exporter. Another reward of camelina is its tolerance of poorer, less fertile conditions. An acre sown with camelina can produce approximately 100 gallons of oil and when planted in rotation with wheat, camelina can increase wheat production by 15 percent. A lot (1000 kg) of camelina will consist of 350 kg of oil, of which pushing can extract 250 kg. Nothing in camelina production is wasted as after processing, the plant's debris can be used for animals silage. Camelina silage has a particularly attractive concentration of omega-3 fatty acids that make it a particularly great livestock feed prospect that is recently acquiring acknowledgment in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and contends well against weeds when an even crop is developed. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina could be an ideal low-input crop ideal for bio-diesel production, due to its lower requirements for nitrogen fertilizer than oilseed rape."
Camelina, a branch of the mustard family, is indigenous to both Europe and Central Asia and barely a new crop on the scene: historical proof indicates it has actually been cultivated in Europe for a minimum of three millennia to produce both grease and animal fodder.
Field trials of production in Montana, currently the center of U.S. camelina research study, revealed a wide variety of outcomes of 330-1,700 pounds of seed per acre, with oil content differing in between 29 and 40%. Optimal seeding rates have been figured out to be in the 6-8 lb per acre range, as the seeds' small size of 400,000 seeds per lb can create issues in germination to achieve an optimum plant density of around 9 plants per sq. ft.
Camelina's potential might enable Uzbekistan to start breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has warped the country's attempts at agrarian reform since attaining self-reliance in 1991. Beginning in the late 19th century, the Russian federal government identified that Central Asia would become its cotton plantation to feed Moscow's growing fabric industry. The process was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise purchased 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 ended up being self-dependent in cotton; five decades later it had actually 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 absence of alternatives Tashkent stays wedded to cotton, producing about 3.6 million tons annually, which generates more than $1 billion while making up approximately 60 percent of the nation's hard cash earnings.
Beginning in the mid-1960s the Soviet government's directives for Central Asian cotton production mostly bankrupted the area's scarcest resource, water. Cotton uses about 3.5 acre feet of water per acre of plants, leading Soviet organizers to divert ever-increasing volumes of water from the region's 2 main rivers, the Amu Darya and Syr Darya, into inefficient watering canals, leading to the significant shrinking of the rivers' final destination, the Aral Sea. The Aral, as soon as the world's fourth-largest inland sea with a location of 26,000 square miles, has diminished to one-quarter its initial size in one of the 20th century's worst environmental catastrophes.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University recently described camelina's organization model 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 watering facilities and a modest wage scale in comparison to America or Europe - all that's missing is the foreign investment. U.S. investors have the money and access to the knowledge of America's land grant universities. What is specific is that biofuel's market share will grow gradually; less specific is who will reap the advantages of establishing it as a practical concern in Central Asia.
If the current past is anything to go by it is not likely 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 financiers have the academic know-how, if they are prepared to follow the Silk Road into establishing a new market. Certainly anything that lessens water usage and pesticides, diversifies crop production and improves the lot of their agrarian population will receive most mindful consideration from Central Asia's governments, and farming and vegetable oil processing plants are not just more affordable than pipelines, they can be constructed quicker.
And jatropha's biofuel potential? Another story for another time.