The Oil Drum

22 comments on They see it here, they see it there, they see that Gazprom everywhere*

Comments can no longer be added to this story.

RussFag on April 13, 2006 - 6:05pm

For each thousand dollars worth of her gross product, Russia spends 70 Giga-Joules of power. To compare with, the U.S. spends 14 GJ, and European countries, 9 GJ. This means that Russia's energy spending is almost eight times higher than Europe's.

That indicates a very simple thing: an official Russia's GDP is significantly underestimated.
At least a half of russian companies pay their workers illegal screw (black money in envelop) to avoid taxes.
Many self-employed don't pay taxes at all hence they are not accounted for in official statistics.
And russian ruble is still undervalued.
But the situation changes. During the last six years the nominal russian GDP in US dollar terms grows by around 25% per year therefore the energy spending decreases by the same figure.

Comments can no longer be added to this story.

westexas on April 13, 2006 - 7:24pm

This explains the high natural gas consumption--#2 behind the States.

Comments can no longer be added to this story.

dissident on April 14, 2006 - 12:09am

The comparisons are being done with the Russian GDP measured in nominal dollar terms. Only amateurs would do this since the real size of the GDP is given in terms of purchasing power parity. According to the CIA factbook Russia's GDP in PPP terms is about 1.4 trillion US dollars. But as you point out the shadow econonmy (not criminal, but a legacy of heavy handed and ham fisted government policy) is around 40% or more so the final figure is closer to 2 trillion dollars. This is almost four times the value that is being used in the comparisons. So 70 GJ/4 = 17.5 GJ. Considering that the US is nowhere near as cold as Russia this is figure is quite reasonable.

Comments can no longer be added to this story.

LevinK on April 14, 2006 - 11:48am

To make a fair comparison we need to devide the residential and industrial/commercial energy usage. For industrial/commercial we can use the energy use per $ output (PPP adjusted), but for residential efficiency we have to use per capita comparison in order to be correct.

My guess is that the truth is (as always) in between - Russian energy use in the economy is inefficient, but nowhere near as inefficient as they are trying to present it. And there are reasons for that - the economy is weak (aside from the energy sector) and the money for efficiency invesments are simply nowhere to be found. Simply bashing Russian economy as "inefficient" is not helping at all.

For residential use, considering what Russians use the energy primary for (not freezing in the winter), and how we in the West use it (driving our cars) - the simple comparison of numbers poses some evident ethical questions.

Comments can no longer be added to this story.

The contents below are paid advertisements. Their appearance does not imply an endorsement by The Oil Drum.

“This order [i.e. capitalism] is now bound to the technical and economic conditions of machine production which today determine the lives of all the individuals who are born into this mechanism, not only those directly concerned with the economic acquisition, with irresistible force. Perhaps it will so determine them until the last ton of fossilized coal is burnt.”

—Max Weber, 1905