The Myth Of Nabucco: Greed, Delusion and $11.4 Billion

China’s completion of an historic natural gas pipeline with Kazakhstan bypassing Russia this week tightens the Asian behemoth’s grip on energy resources needed to fuel a burgeoning economy, a desire also forcing it on a quest for oil and gas wealth in other corners of the globe.

China is not alone in this scramble for energy security. Hungry for oil and gas, world powers like Russia and the United States are also relying on different strategies to grab resource treasures but their efforts have raised questions about conflicts down the road.

The recent revelations of a International Energy Administration whistleblower that the IEA may have distorted key oil projections under intense U.S. pressure is, if true (and whistleblowers rarely come forward to advance their careers), a slow-burning thermonuclear explosion on future global oil production. The Bush administration’s actions in pressuring the IEA to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves have the potential to throw governments’ long-term planning into chaos.

As we all live in the present, it is very hard to fully assess the future implications of decisions supported or made by political and business leaders. An extraordinary game of geo-strategy is under way to lock in long-term agreements, notably in the energy sector. At a global level, the transit routes of future oil & gas pipelines become the object of a power struggle involving not only the suppliers and end-users but also the transit countries. Intensive courtships are under way where a ménage à trois, or more, may be the best option to prevent any country from being in a dominating position to rule a region and exercise political or economic pressure.

Living in southern California, occasionally i hear news of water shortages in our savannah and desert cities. But, as soon as i imagine forgoing long showers and my domestic best friend the dishwasher, the issue seems to magically evaporate from my head.

The truth is that we are desiccating our aquifers, month by month, and leaving them irrevocably damaged in the process.

A recent article by Todd Jarvis of Oregon State University suggests--We can learn something from another group of greedy people who learned their geological lesson decades ago: the oil industry.