The recent discoveries of a International Energy Administration whistleblower that the IEA might have misshaped essential oil forecasts under intense U.S. pressure is, if real (and whistleblowers hardly ever step forward to advance their careers), a slow-burning thermonuclear surge on future global oil production. The Bush administration's actions in pressuring the IEA to underplay the rate of decrease from existing oil fields while overplaying the chances of discovering new reserves have the prospective to toss federal governments' long-lasting preparation into turmoil.
Whatever the truth, increasing long term global demands seem particular to overtake production in the next decade, particularly given the high and rising expenses of establishing new super-fields such as Kazakhstan's overseas Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will need billions in investments before their very first barrels of oil are produced.
In such a scenario, 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 forefront, among the wealthiest possible production locations has been absolutely overlooked by investors up to now - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to end up being a major player in the production of biofuels if adequate foreign investment can be acquired. Unlike Brazil, where biofuel is made largely from sugarcane, or the United States, where it is mainly distilled from corn, Central Asia's ace resource is an indigenous 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 costs, while Turkmenistan is waiting in the wings as an increasing producer of gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and reasonably scant hydrocarbon resources relative to their Western Caspian next-door neighbors have mainly prevented their capability to money in on increasing international energy demands up to now. Mountainous Kyrgyzstan and Tajikistan remain mainly dependent for their electrical requirements on their Soviet-era hydroelectric facilities, but their increased requirement to create winter season electricity has actually caused 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 countries do have nevertheless is a Soviet-era tradition of farming production, which in Uzbekistan's and Turkmenistan case was mainly directed towards cotton production, while Kazakhstan, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has actually become a major manufacturer of wheat. Based on my conversations with Central Asian federal government officials, offered the thirsty needs of cotton monoculture, foreign propositions to diversify agrarian production towards biofuel would have terrific appeal in Astana, Ashgabat and Tashkent and to a lower level Astana for those hardy investors ready to wager on the future, specifically as a plant indigenous to the region has currently proven itself in trials.
Known in the West as incorrect flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is bring in increased clinical interest for its oleaginous qualities, with several European and American business already examining how to produce it in business amounts for biofuel. In January Japan Airlines undertook a historical test flight using camelina-based bio-jet fuel, ending up being the very first Asian provider to try out flying on fuel originated from sustainable feedstocks throughout a one-hour presentation flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month evaluation of camelina's operational efficiency ability and prospective commercial viability.
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 used as a rotation crop with wheat, which would make it of specific interest in Kazakhstan, now Central Asia's significant wheat exporter. Another perk 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 load (1000 kg) of camelina will contain 350 kg of oil, of which pushing can extract 250 kg. Nothing in camelina production is wasted as after processing, the plant's particles can be utilized for livestock silage. Camelina silage has a particularly appealing concentration of omega-3 fatty acids that make it a particularly fine livestock feed prospect that is simply now acquiring recognition in the U.S. and Canada. Camelina is quick growing, produces its own natural herbicide (allelopathy) and competes well against weeds when an even crop is established. 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 household, is native to both Europe and Central Asia and hardly a new crop on the scene: archaeological proof suggests it has actually been cultivated in Europe for at least 3 millennia to produce both grease and animal fodder.
Field trials of production in Montana, presently the center of U.S. camelina research, showed a wide range of results of 330-1,700 lbs of seed per acre, with oil material differing between 29 and 40%. Optimal seeding rates have actually been identified to be in the 6-8 pound per acre range, as the seeds' little size of 400,000 seeds per lb can produce problems in germination to attain an ideal plant density of around 9 plants per sq. ft.
Camelina's capacity might enable Uzbekistan to start breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has warped the nation's attempts at agrarian reform given that 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 sped up under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise bought by Moscow to plant cotton, Uzbekistan in particular was singled out to produce "white gold."
By the end of the 1930s the Soviet Union had ended up being self-sufficient in cotton; five years later it had actually become 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 may to diversify, in the absence of options Tashkent stays wedded to cotton, producing about 3.6 million tons annually, which generates more than $1 billion while constituting roughly 60 percent of the nation's difficult currency income.
Beginning in the mid-1960s the Soviet government's regulations for Central Asian cotton production mainly bankrupted the region'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 two main rivers, the Amu Darya and Syr Darya, into inefficient irrigation canals, resulting in the remarkable shrinkage of the rivers' final 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 original size in among the 20th century's worst environmental catastrophes.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University recently described camelina's service model to Capital Press as: "At 1,400 pounds per acre at 16 cents a pound, camelina would generate $224 per acre; 28-bushel white wheat at $8.23 per bushel would amass $230."
Central Asia has the land, the farms, the watering infrastructure and a modest wage scale in contrast to America or Europe - all that's missing is the foreign financial investment. U.S. investors have the cash and access to the know-how of America's land grant universities. What is specific is that biofuel's market share will grow gradually; less specific is who will profit of establishing it as a practical concern in Central Asia.
If the recent 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 indicate Asian interest, American investors have the academic competence, if they are ready to follow the Silk Road into establishing a new market. Certainly anything that reduces water usage and pesticides, diversifies crop production and enhances the lot of their agrarian population will get most careful consideration from Central Asia's governments, and farming and vegetable oil processing plants are not only more affordable than pipelines, they can be constructed more quickly.
And jatropha curcas's biofuel capacity? Another story for another time.