The current revelations of a International Energy Administration whistleblower that the IEA might have misshaped key oil forecasts under intense U.S. pressure is, if true (and whistleblowers seldom step forward to advance their professions), a slow-burning atomic explosion on future global oil production. The Bush administration's actions in pressing the IEA to underplay the rate of decrease from existing oil fields while overplaying the opportunities of finding brand-new reserves have the prospective to throw federal governments' long-term planning into mayhem.
Whatever the truth, increasing long term global needs seem particular to outstrip production in the next decade, specifically provided the high and increasing costs of establishing new super-fields such as Kazakhstan's offshore 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 function by extending beleaguered production quotas. As market forces and increasing prices drive this technology to the forefront, among the richest prospective production locations has been absolutely ignored by investors up to now - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to end up being a significant player in the production of biofuels if adequate foreign financial investment can be acquired. Unlike Brazil, where biofuel is made mostly from sugarcane, or the United States, where it is primarily 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 because 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 seclusion and reasonably little hydrocarbon resources relative to their Western Caspian next-door neighbors have mainly prevented their ability to cash in on increasing worldwide energy demands up to now. Mountainous Kyrgyzstan and Tajikistan remain mostly dependent for their electrical requirements on their Soviet-era hydroelectric facilities, however their increased requirement to generate winter season electricity has resulted in autumnal and winter water discharges, in turn badly affecting the farming of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these three downstream countries do have however 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 ended up being a significant manufacturer of wheat. Based upon my conversations with Central Asian government officials, given the thirsty needs of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have great appeal in Astana, Ashgabat and Tashkent and to a lesser level Astana for those sturdy financiers ready to bet on the future, specifically as a plant indigenous to the area has actually already proven itself in trials.
Known in the West as false flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is bring in increased clinical interest for its oleaginous qualities, with numerous European and American companies currently examining how to produce it in commercial amounts for biofuel. In January Japan Airlines undertook a historic test flight utilizing camelina-based bio-jet fuel, ending up being the very first Asian provider to experiment with 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 functional efficiency capability and possible commercial 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, requires 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 significant wheat exporter. Another benefit 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 lot (1000 kg) of camelina will include 350 kg of oil, of which pressing can draw out 250 kg. Nothing in camelina production is squandered as after processing, the plant's debris can be used for livestock silage. Camelina silage has a particularly attractive concentration of omega-3 fatty acids that make it a particularly fine livestock feed prospect that is recently gaining recognition in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and contends well versus weeds when an even crop is developed. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina could be a perfect 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 barely a new crop on the scene: historical evidence suggests it has been cultivated in Europe for a minimum of three centuries to produce both vegetable oil and animal fodder.
Field trials of production in Montana, currently the center of U.S. camelina research study, revealed a large range of outcomes of 330-1,700 lbs of seed per acre, with oil content varying between 29 and 40%. Optimal seeding rates have been identified to be in the 6-8 lb per acre range, as the seeds' small size of 400,000 seeds per lb can develop problems in germination to accomplish an optimal plant density of around 9 plants per sq. ft.
Camelina's potential might allow Uzbekistan to begin breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has warped the country's efforts at agrarian reform since attaining independence in 1991. Beginning in the late 19th century, the Russian government determined that Central Asia would become its cotton plantation to feed Moscow's growing fabric industry. The procedure was sped up under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also bought 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 become a major exporter of cotton, producing more than one-fifth of the world's production, focused in Uzbekistan, which produced 70 percent of the Soviet Union's output.
Try as it may to diversify, in the absence of options Tashkent remains wedded to cotton, producing about 3.6 million loads every year, 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 federal government's regulations 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 coordinators to divert ever-increasing volumes of water from the region's 2 main rivers, the Amu Darya and Syr Darya, into inefficient watering canals, resulting in the dramatic shrinking of the rivers' last 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 actually shrunk to one-quarter its original size in among the 20th century's worst environmental catastrophes.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently described camelina's organization 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 gather $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 is the foreign investment. U.S. investors have the cash and access to the expertise of America's land grant universities. What is specific is that biofuel's market share will grow over time; less certain is who will profit of developing it as a practical concern in Central Asia.
If the recent past is anything to pass it is unlikely to be American and European financiers, fixated as they are on Caspian oil and gas.
But while the Japanese flight experiments show Asian interest, American investors have the academic competence, if they are willing to follow the Silk Road into establishing a brand-new market. Certainly anything that lessens water use and pesticides, diversifies crop production and enhances the lot of their agrarian population will receive most mindful consideration from Central Asia's federal governments, and farming and veggie oil processing plants are not only more affordable than pipelines, they can be built quicker.
And jatropha's biofuel capacity? Another story for another time.