Crisis And Plenty: The Politics Of Soviet Energy Under Brezhnev And Gorbachev
This is more than a statistical survey of the state of the Soviet energy industry over the past decade or so, although it is well supplied with technical data. It is a first-rate study in political economy, weighing difficulties that are systemic against those involving choices by leadership, and relating energy policy to the broader question of reform. Under perestroika as under Brezhnevian stagnation, rather than pressing conservation, rationing demand and containing costs, the government has tried to meet an incipient crisis by expanding the supply of hydrocarbons-an enormous increase in gas production has provided the easiest answer without solving any basic problems.
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Thanks to a steady increase in oil output in recent years, Russia is now poised to displace Saudi Arabia as the key energy supplier to the West. But the kingdom has not welcomed Russia's gain. The emerging contest for oil dominance between Russia and Saudi Arabia will profoundly affect U.S. energy security, Russia's global role, Saudi power, and the Organization of Petroleum Exporting Countries, not to mention the global economy.
Russia and the United States have settled on oil as the basis of a new partnership. This move is dangerous, however, because it ignores the divergent interests of the two countries and their inability to influence global oil markets. Indeed, war in Iraq could tear this partnership apart. A far better basis for U.S. - Russian ties would be the two nations' durable common interest in developing and safeguarding nuclear power.
The Caspian basin holds enormous oil and gas deposits that could play a critical role in the world's economic future. But getting them out of the ground and onto the market requires overcoming formidable political and geographic problems. For its own sake as well as the region's, Washington should do whatever is necessary to ensure the emergence of secure and independent routes for Caspian energy to reach the outside world.

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