The recent discoveries of a International Energy Administration whistleblower that the IEA may have misshaped key oil projections under extreme U.S. pressure is, if true (and whistleblowers hardly ever step forward to advance their careers), a slow-burning atomic explosion on future global oil production. The Bush administration's actions in pushing the IEA to underplay the rate of decline from existing oil fields while overplaying the possibilities of finding new reserves have the possible to throw governments' long-lasting planning into mayhem.
Whatever the reality, rising long term worldwide needs appear particular to overtake production in the next years, particularly provided 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 situation, additives and alternatives such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and rising prices drive this technology to the leading edge, one of the richest possible production areas has actually been totally overlooked by investors already - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to become a significant gamer in the production of biofuels if adequate foreign financial investment can be procured. Unlike Brazil, where biofuel is manufactured 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 shores of the Caspian, Azerbaijan and Kazakhstan have seen their economies boom because of record-high energy rates, while Turkmenistan is waiting in the wings as an increasing producer of natural gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and fairly little hydrocarbon resources relative to their Western Caspian neighbors have actually mainly hindered their capability to money in on rising international energy demands up to now. Mountainous Kyrgyzstan and Tajikistan stay mostly dependent for their electrical requirements on their Soviet-era hydroelectric infrastructure, but their heightened requirement to produce winter season electricity has actually led to autumnal and winter season water discharges, in turn severely affecting the agriculture of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these 3 downstream nations do have nevertheless is a Soviet-era legacy of farming production, which in Uzbekistan's and Turkmenistan case was largely 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 on my conversations with Central Asian government authorities, provided 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 lesser level Astana for those hardy investors ready to bank on the future, especially as a plant indigenous to the region has actually currently 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 scientific interest for its oleaginous qualities, with a number of European and American companies already examining how to produce it in business quantities for biofuel. In January Japan Airlines carried out a historical test flight utilizing camelina-based bio-jet fuel, ending up being the first Asian carrier to try out flying on fuel derived 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 efficiency capability and potential industrial viability.
As an alternative energy source, camelina has much to suggest it. It has a high oil material 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 reward 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 contain 350 kg of oil, of which pressing can extract 250 kg. Nothing in camelina production is squandered as after processing, the plant's debris can be utilized for animals silage. Camelina silage has a particularly attractive concentration of omega-3 fats that make it an especially fine animals feed prospect that is simply now gaining recognition in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and competes well against 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 appropriate for bio-diesel production, due to its lower requirements for nitrogen fertilizer than oilseed rape."
Camelina, a branch of the mustard family, is native to both Europe and Central Asia and barely a new crop on the scene: archaeological evidence suggests it has actually been cultivated in Europe for at least 3 centuries to produce both grease and animal fodder.
Field trials of production in Montana, presently the center of U.S. camelina research, showed a vast array of results of 330-1,700 pounds of seed per acre, with oil material varying between 29 and 40%. Optimal seeding rates have actually been figured out to be in the 6-8 pound per acre variety, as the seeds' little size of 400,000 seeds per lb can develop issues in germination to achieve an optimal plant density of around 9 plants per sq. ft.
Camelina's potential might enable Uzbekistan to start breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has distorted the country's attempts at agrarian reform since achieving self-reliance in 1991. Beginning in the late 19th century, the Russian federal government figured out 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 also 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 years 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 might to diversify, in the lack of alternatives Tashkent stays wedded to cotton, producing about 3.6 million loads annually, which generates more than $1 billion while constituting around 60 percent of the country's hard cash income.
Beginning in the mid-1960s the Soviet federal government's instructions for Central Asian cotton production mainly 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 two main rivers, the Amu Darya and Syr Darya, into inefficient watering canals, resulting in the dramatic shrinking of the rivers' final destination, the Aral Sea. The Aral, once the world's fourth-largest inland sea with an area of 26,000 square miles, has shrunk to one-quarter its original size in among the 20th century's worst ecological disasters.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently explained camelina's company 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 gather $230."
Central Asia has the land, the farms, the watering infrastructure and a modest wage scale in comparison to America or Europe - all that's missing out on is the foreign investment. U.S. investors have the cash and access to the proficiency of America's land grant universities. What is certain is that biofuel's market share will grow in time; less particular is who will reap the benefits of developing it as a feasible concern in Central Asia.
If the current past is anything to pass it is unlikely 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 financiers have the academic expertise, if they want to follow the Silk Road into developing a new market. Certainly anything that reduces water use and pesticides, diversifies crop production and improves the great deal of their agrarian population will receive most mindful consideration from Central Asia's federal governments, and farming and grease processing plants are not only much cheaper than pipelines, they can be constructed quicker.
And jatropha curcas's biofuel capacity? Another story for another time.