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The Russian Peak Oil Scenario, Part 1

General discussions of the systemic, societal and civilisational effects of depletion.

The Russian Peak Oil Scenario, Part 1

Unread postby directinfo » Fri 19 Aug 2005, 04:00:48

The Russian Peak Oil Scenario, Part 1
The Legendary Dave Howell interviews Tate Ulsaker
August 2005



Recently, I was honored to meet another giant of the Peak Oil truth movement right here in Moscow.

David Howell, co-authored the classic “Energy for Survival: The Alternative to Extinction” way back in 1974, during the early days of our now rapidly escalating energy crisis.

A quick Google search will pull up thousands of references to David Howell’s book, still being quoted and referenced by organizations like: www.urbanecology.org.au and www.co2andclimate.org.

Local bookstores might not stock it as often as they used to but you can buy it at Amazon or Barnes and Noble. My copy should be coming to me by mail in a few days.

I have not yet read the book, but I did meet with Dave Howell. It seems to me that Dave’s views basically parallel the current leaders like Kunstler, Campbell, Heinberg and others. Basically, we all realize that we are face-to-face with a multi-headed dragon that humankind has never dealt with before.

Since the publication of Dave’s book 30+ years ago, he has watched with concern as generations of presidents and peoples in the US and the world have chosen lifestyles and policies, totally ignoring the message within his book which is prominently displayed on the front cover with that ominous title: “Energy for Survival: The Alternative to Extinction”. The message can’t get any more succinct and it can’t be any more right. Paradoxically, it can’t get any more ignored. To our peril, we have lost our chance to avoid a face-to-face confrontation with the multi-headed dragon called Peak Oil. But we did not lose our chance to survive.

Survival was precisely the topic of interest discussed between Dave and me. The following discussion takes the form of an interview. Dave suggested interviewing me on the subject of avoiding the coming collapse and we focused upon Russia as a post collapse survivor nation.

Dave and I were introduced with help from a moderator of EnergyResources (ER), a popular newsgroup at: http://groups.yahoo.com/group/energyresources/, where we both have contributed opinions.

The following 17 questions were provided to me by Dave via email. Subsequently, we met over a beer and talked for several refills worth of issues. I am humbled that he would interview me on a subject that he knows so well. The following is not an actual dialogue but a set of questions concerning Peak Oil today and how it will likely impact Russia VS the rest of the world.

$this->bbcode_second_pass_quote('', 'D')ave Howell (DH): Tate, I’m bringing up the oil-peak question and post-oil-peak possibilities with increasing frequency among my students. Most of the stuff that I read; e.g., on the Energy Resources (ER) site, is focused on the impacts on America, so I’ve got some pretty good ideas of what life is going to be like there. What I can’t give my students any guidance on is what they can expect.

You’re in the business of consulting with and giving advice to many of Russia’s largest and most influential Western businesses, and to do that you have to have your ear pretty close to the ground. I know that you are also very much up-to-speed on the issue of peak oil and on the nearing global warming crisis. And of course as a Russian ex-pat you have more than a passing interest in the art of survival here. So from your unique vantage point, your educated guesses would be very helpful in providing me – and my students – with some broad guidance about how these upcoming developments are going to uniquely affect Russia. So I’m very grateful for your taking your time to think about some of these questions.


Tate Ulsaker (TU): Questions from you Dave give me reason to reflect. You have been aware of Peak Oil for decades and you have a lot to teach others. I will try to support that effort with your students.

$this->bbcode_second_pass_quote('', 'D')H question 1: Somebody on the EnergyResources site recently speculated, “Perhaps the greatest threats to the U.S. in the coming decades are Europe and Russia.” Do you agree with this?


TU: Dave, I don’t agree at all. It seems to me that Russia is not threatened nor does Russia have any advantages in threatening the United States. Besides, no nation on earth is doing more to destroy the United States than the United States. Our currency markets have nowhere to go but Weimar, we produce almost nothing of exportable value any more, our borders are wide open even as we wage expensive resource wars with expensive resources and we have built economic bubble upon bubble. There is no way out of our mess from this point except through collapse of our currency, stocks, housing, and industry. Eventually, society and civilization as we know it will follow. This process has already begun. I believe that we have reached Peak Oil or will reach it this year. Russia and the rest of the world know what to expect from a US collapse so they will benefit by simply waiting for opportunities on the geopolitical and economic landscape as the US falls into the junk heap of post-empire status.

$this->bbcode_second_pass_quote('', 'D')H question 2: But some people believe that Russia is a threat to America still. If that were true then where exactly could that threat potentially come from? Energy? Military? Social? Competition for resources?


TU: Well, that is a good point on a few levels. Political minds in the United States these days believe that a sovereign country is “threatening” the viability of the United States whenever that country refuses to sell raw energy resources at the volumes and price levels so required for United States global hegemony. Americans are right to fear collapse, but the only real solution is to eliminate the need to steal resources from weaker countries through unfair political, economic and military pressures.

I am just now discovering that resource wars are nothing new. Resource acquisition, I am finding, has always been a central part of any war strategy, regardless of the official reason for waging war. Many times, resource acquisition is the primary purpose for waging war in the first place. The history books print the officially stated reasons that one side will declare war on the other side. Many times, this is necessary to garner public support for an unjust resource war that would otherwise fail to win moral support for the many sacrifices to be made. And who benefits?

Most Americans are only aware of the good side of US policy but they discount or fail to consider the dark side of US policy that arguably began with wiping out American Indians using small pox-laden blankets and extended from there to every corner of the globe until we find ourselves now spraying thousands of tons of radioactive depleted uranium into the Iraqi cities, food supply and water supply. The official reasons for waging war change through time but the central purpose seems to be largely about resource acquisition. Americans have stopped asking the question “who benefits?” They have stopped thinking for themselves and are therefore easily misled into wars that don’t make any sense upon even cursory analysis.

So on that level, yes, Russia can easily be painted as a threat to the American people because Russia may be in a position to deny America oil in the very near future as demand outstrips supply. America is not a good partner for Russia because America has nothing to give Russia in return for petroleum. After the dollar collapse, the US is finished except for nuclear weapons, bravado, and misguided policies.

So, back to your question about a potential threat from Russia against the US. The biggest threat coming from Russia would be if Russia would simply curtail sales to the US in preference for a more sane policy of internal economic and social development.

If president Putin were drunk enough to listen to my advice about all this, and if I was not in fear of losing my life for inadvertently insulting him, here is what I would say:

“Mr. President, do what is best for Russia because what is sane for Russia is sane for the world. Go ahead and start decreasing US access to your oil. Why sell a finite and dwindling and much demanded resource prior to the biggest bull market in the history of mankind?”

“Russia is the world’s only energy exporter with a military power of significance. The US is not your master. The US is on the verge of the post-imperialist junkyard and blind to that impending certain fate. Your country has the potential to do what the United States failed to do in 1973.

“Mr. President, we Americans have failed to develop a sustainable society and so our leaders are driven mad to secure ever-dwindling supplies just to prolong the coming collapse. Their choices are limited to resource wars today because their vision was limited to a mindless petro-growth 30-years ago. Russia can either follow the path of the United States towards guaranteed collapse or Russia can find her own path towards possible peace and prosperity.

“With Peak Oil’s evident arrival in 2005, America is poised for a mighty collapse on a level commensurate with her status as the world’s sole superpower. Until now, the world has been foolishly following in the unwise footsteps of America towards greater industrialization and increased dependency on the dwindling supplies of petroleum products. Resource wars are no solution, but they tempt leaders to engage in contests that waste the very resources being sought in the first place.

“The direction of the world is clearly undesirable, but Russia has a different possible destiny. Perhaps using the collapse of America as a tool for social change, Russia might implement programs that depopulate mega-cities, empower vast agricultural zones with a fair homesteading act and new regional powers.

“No country on earth has the combination of land, energy, educated peoples and political will to do what Russia can do right now at this critical juncture of civilization. Mr. President, you have a chance to break away from this highway to destruction and to chart your own path towards a secure future for your people.

“If successful, your legendary status would be sealed in history as a pivotal figure of hope for all mankind, of no less stature and respect than India’s Ghandi.

“With your political will, the coming crash of America will spark a move inward for Russia, rather than outward to additional resource contests involving China, India, Europe and others. Let the nations of the world continue trading the blood of their peoples for dwindling resources if that is their desire. Russia can begin building a nation that will last far beyond these temporary resource wars.

“And with each success, Mr. Putin, please don’t forget to seal your borders...”

(at this point I would raise my 100 grams of vodka up with a gesture to make a toast)

“…because a sustainable Russia with a prosperous, peaceful, self-governed, expansive, organically producing series of agricultural communities will be the desire of everyone in the world in the post-petroleum stone age.”

(Then, following the distinctive clink of our respective shot glasses, we steep our glasses upward and gulp down the fuel while exhaling through our teeth… Then I look up and to my surprise, I see that I have been given space to add one more memorable phrase. I seize the moment.)

“…and Russia will be the desired place of everyone in the post petroleum world by the same token as your would be partner, America, was the desire during the age of oil.”

(And then I woke up from that strange dream with a blazing hangover and I wondered what am I doing on the floor by the computer at 3:00 AM?)

$this->bbcode_second_pass_quote('', 'D')H question 3: What do you think is the future for ex-pat Americans here?


TU: I will answer a bit later Dave. I think my wife has some remedies for this hangover in the kitchen.

***
Last edited by directinfo on Fri 19 Aug 2005, 06:47:44, edited 5 times in total.
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby Colorado-Valley » Fri 19 Aug 2005, 04:59:00

Great post.

I've been talking to my wife about the possibility of immigrating to Siberia. Better hurry, before they close the borders and put up a new Iron Curtain!

(Only half joking ...)
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby Doly » Fri 19 Aug 2005, 05:27:54

I have been for some time noticing a lot of talks between Russia, China and South American countries (especially Venezuela and Brazil).

I have the feeling that they are forming a new political axis. Any opinions on that?
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby shakespear1 » Fri 19 Aug 2005, 05:34:57

I would take a trip to Siberia first before considering moving there. :-D

I have been there and do not have any illusions of moving there. :)
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby eric_b » Fri 19 Aug 2005, 07:43:36

directinfo,

Enjoyed your post!

Looking forward to the rest of the interview.
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby Madpaddy » Fri 19 Aug 2005, 09:56:18

Leaf,

Are you familiar with Hungary and if so, what is your view on how Hungary will be post peak?
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby shakespear1 » Fri 19 Aug 2005, 10:30:53

I won;t argue that the right "raw material" is in the Ukrain-Russia-Belarus, but they lack some key ingrdiences, Good Management Practices and Political System not centered on "All for One and None for Rest".
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby Madpaddy » Fri 19 Aug 2005, 10:35:00

Hi Leaf,

Thanks for your observation. In my previous life as a western capitalist consumer I purchased an apartment in central Budapest which I still own (outright). I made some good friends with English speaking Hungarian people and my wife and I have vaguely considered the possibility of moving there because if we sold up in Ireland and moved to Hungary we would have a good bit of spare cash. However, we realise that being stuck in a foreign country if the balloon really goes up would be the worst possible scenario. Most likely we will stick to Ireland, my 1 acre, huge mortgage and pretty secure job.

I take your point on learning Hungarian but in my visits there I found that a good percentage of the population had reasonable English.

I suppose most sensibly we should sell the apartment and pay off some of the mortgage here while we still can but I'm keeping my options open at the moment.
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby rockdoc123 » Fri 19 Aug 2005, 10:43:47

I mentioned this on a thread started a few months ago by Russian Cowboy. In my opinion Russia is probably set to be the best off in a post peak world. The reason for that is not so much their oil and gas reserves but rather their people. They are generally well educated and used to a hard lifestyle. In the early nineties I was acquainted with a number of the scientists from various academies across western Russia. A typical day for a few of these folks was to wake up around 4 am so that they could make a delivery of cut wood, following that they would go to their normal 8 hour job at the academy and following that they would go home and spend a few hours making deliveries of potatoes. 3 jobs just to make ends meet. Although they had a lifestyle that none of us would particularily want to emulate they were very happy....hardship was like water off a ducks back. And they were always willing to help out their neighbours...perhaps one of the few good things that may have come from the communist upbringing. Post peak will be a breeze for these folks.
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby shakespear1 » Fri 19 Aug 2005, 10:51:16

From my own observations I agree on this point

$this->bbcode_second_pass_quote('', 'P')ost peak will be a breeze for these folks.


But I do remember the days of great changes in Russia , 1992, when going to a hospital was not for anyone living in a Western Country. Even the Russians told me that that was the last places they wanted to be taken care of.

I would probable consider going to Island or Denmark for post PO. Countries that appear to be able to better get their house in order when it comes to energy issues. :)
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby Madpaddy » Fri 19 Aug 2005, 10:58:50

Leaf,

Ireland has alot going for it in that the climate is mild, land fertile, plenty of water. It is an island and is not overpopulated (harder for the hordes to get to although this hasn't stopped the Vikings, Celts, Normans, English). I have read your posts previously on why you think the UK and Ireland will not do too well and I agreed with some but not all of your points. We have very little in the way of resources or fossil fuels of our own and being an island will make this problem much worse.

However, the devil you know and all that. I hope that I have another year or so to think this one through. If I left my job I would also have a pension which would be tax free if i moved abroad. This is guaranteed by the government for as long as it exists. !!!!
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby Madpaddy » Fri 19 Aug 2005, 21:06:14

Leaf,

I think we will adapt here ok but only if the crunch hits in the next 2 years or so. We are busy tearing the country apart and building unsustainable suburbs like there is no tomorrow (and maybe there isn't).

I wouldn't write off our next door neighbours either but 60 million in that area is far far too much IMHO. Ireland had 8 million before the famine and Britain probably can't sustain much more than twice that figure if even that. I still don't see starvation - just a steady decline in population.
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby actionreplay » Fri 19 Aug 2005, 22:18:10

I'm Irish. From a small farm in the West, a still-active agricultural community.

I think they will manage fine in that part of the country. Not many home comforts, but what was good enough for my grandad, ultimately, would be good enough for me if push came to shove. I know from first-hand experience that farming is a back-breakingly hard work existence and since in modern-day society easier options are available to be I have chosen the route of higher education and computer programming in a bank.

However, if I had to I'd certainly be happy to roll my sleeves up and dig the spuds. If things get that bad my parents will need my help anyway, I have no intention of leaving them to fend for themselves with me living here abroad in a really unpleasant peak crash scenario. (Have large extended family, I'd say if we all got stuck in we could make a living at it even post-peak).
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby Russian_Cowboy » Sat 20 Aug 2005, 05:28:27

This thread is totally imbecile getting even more imbecile towards the end. Putin is not such a great patriot of Russia. He acts only to maximize the thickness of his and his ministers' wallets.

$this->bbcode_second_pass_quote('Colorado-Valley', 'G')reat post.

I've been talking to my wife about the possibility of immigrating to Siberia. Better hurry, before they close the borders and put up a new Iron Curtain!

(Only half joking ...)


First you need to check if you can drink two bottles of vodka without any snack in 5 minutes. If not, you are not ready to immigrate. More seriously, Siberia already has over 1.5 million illegal immigrants and this is almost 10% of the total population. Plus a lot of legal ones. So the anti-immigrant sentiment is pretty high there. They even make every effort to deny jobs to people from the other parts of Russia as I recently discovered. And by the way, Siberia is far from being an oil cornucopia. The reserves are half-depleted and in 5-10 years from now, the oil production in Siberia is doomed to start falling off a cliff. Here is a chart showing monthly production of energy commodities (oil, gas, coal, uranium) in Russia in mln. tonnes of oil equivalent as a percentage of the production in January 2002: Image

$this->bbcode_second_pass_quote('rockdoc123', '
')I mentioned this on a thread started a few months ago by Russian Cowboy. In my opinion Russia is probably set to be the best off in a post peak world. The reason for that is not so much their oil and gas reserves but rather their people. They are generally well educated and used to a hard lifestyle. In the early nineties I was acquainted with a number of the scientists from various academies across western Russia. A typical day for a few of these folks was to wake up around 4 am so that they could make a delivery of cut wood, following that they would go to their normal 8 hour job at the academy and following that they would go home and spend a few hours making deliveries of potatoes. 3 jobs just to make ends meet. Although they had a lifestyle that none of us would particularily want to emulate they were very happy....hardship was like water off a ducks back. And they were always willing to help out their neighbours...perhaps one of the few good things that may have come from the communist upbringing. Post peak will be a breeze for these folks.


This is all about the old folks. The young ones (<40 y.o.) have been spoilt by devoring all the oil-gas revenues and the wealth accumulated by their ancestors during the years of communism. Education in Russia also sucks big deal, I mean the one the kids are getting now, not the one that was in place during the Soviet years. The pendulum has swung to the other extreme so to say. But you are right in that the old folks in Russia should be able to weather the PO ok.

$this->bbcode_second_pass_quote('Leaf', 'E')verything is really in place here in ukraine for a post peak survival..ie passanger rail, electric rail, buses, mimimal carts. organic farming, and everyone has gardens and produces their own foods at least for a % of consumption. And then add the oil and gas from Russia


I doubt that Russia will keep supplying its neighbors, including Ukraine, with free oil when the depletion starts kicking in. In addition, Ukraine will be hit particularly hard by peak oil as it consumes the amount of oil worth about 8% of its GDP at IPE prices. Check this out: http://www.peakoil.com/fortopic11206.html

$this->bbcode_second_pass_quote('Leaf', ' ')Me :How did you like the USA and living there?
Sergey: The money was good, but honestly beyond that it was very vain there. It was hard to make friends


For some unknown reasons every other man in Russia and Ukraine is named Sergey and every other woman Elena. It is hard to make friends in any country if you do not know its language very well, if you talk to your wife & kids in a foreign language all the time. I made a number of friends in the US. In fact, now I have more friends in the US than in Russia.
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Re: The Russian Peak Oil Scenario, Part 1

Unread postby shakespear1 » Sat 20 Aug 2005, 06:01:04

I am with you Cowboy. I think "leaf" has been in Ukrain too long as seen by his english composition.

Living in Russia, Ukraine ( have not been there but Ukrainians here in Poland tell me a lot) and even Poland is NOT a safe haven for post - PO refugees. Those in the West ( 80-90 % ) are not ready to even show up and live for a year on the level ot a regular citizen. Crossing cultures is not for everyone and crossing this divide is a great challange. Once you reserves of $ or Euro depleat you are in for a shocker.

That shocker will come with your first contact with burocrats, living in apartments like the rest, shortages of electricity, no Wal-Mart or Home Depote etc.

When you run low on funds because you were living on the "expat" level you can completely forget about getting work. You will not find it like the countless people in Russia and Ukrain that can not find it and need to come to Poland to amke a buck. OK, you might be able to teach English.

I can go on, but my view of this "move" is, great in time such as today and with plenty of money. But when your $$ are worthless and you need to live like the rest this may not be a kind refuge as you migh imagine ( not for most ). :)

Even in Poland today in small towns and villages life is TOUGH!!!! Produce needs to go to market ( need gaoline+transport ), price of produce is about as predictable as the weather, electricity is bought with money you need to earn, etc. Not easy :roll:
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