WRITE for ATol ADVERTISE MEDIA KIT GET ATol BY EMAIL ABOUT ATol CONTACT US
Asia Time Online - Daily News
             
Asia Times Chinese
AT Chinese



    Central Asia
     Jan 18, 2007
Page 1 of 2
Petro-power and nuclear renaissance
By Michael T Klare

(For a directly related article, see The Pentagon's energy-protection racket )

Not "Islamo-fascism" but "energo-fascism" - the heavily militarized global struggle over diminishing supplies of energy - will dominate world affairs (and darken the lives of ordinary citizens) in the decades to come. This is so because top government officials globally are increasingly unwilling to rely on market forces to



satisfy national energy needs and are instead assuming direct responsibility for the procurement, delivery and allocation of energy supplies.

The leaders of the major powers are ever more prepared to use force when deemed necessary to overcome any resistance to their energy priorities. In the case of the United States, this has required the conversion of its armed forces into a global oil-protection service; two other significant expressions of emerging energo-fascism are the arrival of Russia as an "energy superpower" and the repressive implications of plans to rely on nuclear power.

Energy haves and have-nots
With global demand for energy constantly rising and supplies contracting (or at least failing to keep pace), the world is being ever more sharply divided into two classes of nations: the energy haves and have-nots. The haves are the nations with sufficient domestic reserves (some combination of oil, gas, coal, hydropower, uranium and alternative sources of energy) to satisfy their own requirements and be able to export to other countries; the have-nots lack such reserves and must make up the deficit with expensive imports or suffer the consequences.

From 1950 to 2000, when energy was plentiful and cheap, the distinction did not seem as obvious as long as the have-nots possessed other forms of power: immense wealth (like Japan); nuclear weapons (like Britain and France); or powerful friends (like the North Atlantic Treaty Organization - NATO - and Warsaw Pact countries).

For poor countries possessing none of these assets, being a have-not state was a burden even then, contributing mightily to the debt crisis that still afflicts many of them. Today, these other measures of power have come to seem less important and the distinction between energy haves and have-nots correspondingly more significant - even for wealthy and powerful countries such as the United States and Japan.

Surprisingly, there are very few energy haves in the world today. Most notable among these privileged few are Australia, Canada, Iran, Kazakhstan, Kuwait, Nigeria, Qatar, Russia, Saudi Arabia, Venezuela, Iran, Iraq (if it were ever free of conflict), and a few others. These countries are in an envious position because they do not have to pay stratospheric prices for imported oil and natural gas and their ruling elites can demand all sorts of benefits - political, economic, diplomatic and military - from the foreign leaders who come calling to procure their energy products. Indeed, they can engage in the delicious game of playing one foreign leader against another, as Kazakh President Nursultan Nazarbayev - a regular guest in Washington and Beijing - has become so adept at doing.

Pushed even further, this pursuit of favors can lead to a quest for political domination - with the sale of vital oil and natural-gas supplies made contingent on the recipient's acquiescing to certain political demands set forth by the seller. No country has embraced this strategy with greater vigor or enthusiasm than President Vladimir Putin's Russia.

The rising energy superpower
At the end of the Cold War, it appeared as if Russia was a forlorn, wasted ex-superpower, impoverished in spirit, treasure and influence. For years, it was treated with disdain by US officials. Its leaders were forced to swallow humiliating agreements like the expansion of NATO to Moscow's former satellites in Eastern Europe and the abrogation of the Anti-Ballistic Missile Treaty. To many in Washington, it must have seemed as if Russia was little more than a relic of history, a has-been never again slated to play a significant role in world affairs.

Today Moscow, not Washington, seems to be enjoying the last laugh. With control over Eurasia's largest reserves of natural gas and coal as well as enormous supplies of petroleum and uranium, Russia is the new top dog - an energy superpower rather than a military one, but a superpower nonetheless.

First, a look at the big picture. Russia is the absolute king of natural-gas producers. According to BP (the former British Petroleum), it alone possesses 1.7 quadrillion cubic feet of proven gas reserves, or 27% of the total world supply. This is even more significant than it might appear because Europe and the former USSR rely on natural gas for a larger share of their total energy - 34% - than any other region of the world. (In North America, where oil is the dominant fuel, natural gas accounts for only 25% of the total.)

Because Russia is by far the leading supplier of Eurasia's gas, it enjoys a position of supply dominance unmatched by any energy provider - except Saudi Arabia in the petroleum field. Even in that realm, Russia is the planet's second leading producer, falling just 1.4 million barrels short of Saudi Arabia's 11.0 million barrels per day at the start of 2006. Russia also possesses the world's second-largest reserves of coal (after the US) and is a major consumer of nuclear energy, with 31 operational reactors.

Soon after assuming power as president in 1999, Putin set out to convert this superabundance of energy - the economic equivalent of a nuclear arsenal - into the sort of political clout that would restore Russia's great-power status. By controlling the flow of energy to other parts of Eurasia from Russia and former Soviet republics such as Kazakhstan and Turkmenistan (whose energy is exported through Russian pipelines), he reasoned, he could exercise the sort of political influence enjoyed by Soviet officials during the heyday of the Cold War.

To accomplish this, however, he would have to reverse the wide-ranging privatization of the oil-and-gas industry that occurred in the early 1990s after the breakup of the USSR and bring vital elements of Russia's privately owned energy industry back under state control. Since there was no legitimate way to do this under Russia's post-communist legal system, Putin and his associates turned to illegitimate and authoritarian methods to de-privatize these valuable assets. Here, we see another emerging face of energo-fascism.

Remarkably, Putin had long before spelled out the rationale for concentrating control over Russia's energy resources in the state's hands. In a 1999 summary of his PhD dissertation on "Mineral Raw Materials in the Strategy for Development of the

Continued 1 2


Surging toward the holy oil grail (Jan 12, '07)

The post-abundance era (Dec 7, '06)

The New World Oil Order A series by W Joseph Stroupe, (Nov, '06)

 
 



All material on this website is copyright and may not be republished in any form without written permission.
© Copyright 1999 - 2007 Asia Times Online (Holdings), Ltd.
Head Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East, Central, Hong Kong
Thailand Bureau: 11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110