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The Great Oil Game: Resource Crisis in Russia?

May 6, 2015

The Great Oil Game: Resource Crisis in Russia?

Weekly pageviews of “Resource Crisis.” My blog seems to be having a remarkable success in Russia, but do the Russians understand the problem of resource depletion?

Complex structures, such as states and empires, are always prone to collapse and they usually give little or no previous warnings. The collapse of the Soviet Union, indeed, had not been predicted by anyone and it came completely unexpected. In the present crisis, instead, Western analysts seem to have fallen in the opposite mistake, predicting the rapid demise of the Russian Federation. But that didn’t happen. On the contrary, the Russian economic system showed a remarkable resilience and it strongly rebounded after a bad moment, last year. (image below from Bloomberg).

So, predicting collapses is always very difficult in a world’s situation that looks more and more like a Russian Roulette (an appropriate name in this context), but played with nuclear weapons. It might well be that some states which at present look very solid could be the ones to experience a sudden and unexpected Soviet-style implosion (let me not say which ones these states could be).

Let’s go more in depth in this matter. The collapse of Russia was expected in the West mainly as the result of the recent crash of the world’s oil market. That repeated the situation of the late 1980s, when the old USSR was bankrupted by a similar effect: a rapid fall of oil prices which strongly reduced the revenues from oil exports.

…click on the above link to read the rest of the article…

 

 

Starved for Energy, Pakistan Braces for a Water Crisis

February 13, 2015

Starved for Energy, Pakistan Braces for a Water Crisis

Energy-starved Pakistanis, their economy battered by chronic fuel and electricity shortages, may soon have to contend with a new resource crisis: major water shortages, the Pakistani government warned this week.

A combination of global climate change and local waste and mismanagement have led to an alarmingly rapid depletion of Pakistan’s water supply, said the minister for water and energy, Khawaja Muhammad Asif.

“Under the present situation, in the next six to seven years, Pakistan can be a water-starved country,” Mr. Asif said in an interview, echoing a warning that he first issued at a news conference in Lahore this week.

The prospect of a major water crisis in Pakistan, even if several years distant, offers a stark reminder of a growing challenge in other poor and densely populated countries that are vulnerable to global climate change.

In Pakistan, it poses a further challenge to Prime Minister Nawaz Sharif, whose government has come under sharp criticism for failing to end the country’s electricity crisis. In some rural areas, heavy rationing has meant that as little as four hours of electricity a day is available.

…click on the above link to read the rest of the article…

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