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At the workshop in Atyrau, a young Kazakhstani data scientist approached me to ask about a project that he was migrating to Microsoft’s cloud platform. He didn’t speak English fluently, but I could tell he was a good engineer. I wasn’t sure if he really needed my help. It seemed like he just wanted to chat with another engineer in a room filled with businesspeople.

Afterwards, he told me a bit about how he ended up working for TCO, and how he wasn’t able to find any other opportunities in the country that could match the offer. He had attended Purdue University to get an undergraduate degree in computer science. But since the Kazakhstan government paid for his tuition, he had to return to the country to work. “It means that I have to work in oil,” he said. “It’s basically the only industry that pays.”

Speaking with him made me realize the extent of oil’s dominance in Kazakhstan. Oil is by far the biggest economic sector, accounting for 63 percent of the country’s total exports. In 2013, TCO made $15 billion in direct payments to the government — an enormous figure, considering that the country’s entire tax revenue that year came to $21 billion. TCO is also a major source of wealth for the region. For years, the venture has invested millions of dollars into building schools, community centers, and fitness centers for the local people.

Kazakhstan’s dependence on oil has only grown over the past decade. In 2016, TCO announced a $36.8 billion expansion to the Tengiz project, tying the country’s economic future even more closely to fossil fuels. To make matters worse, the country’s ability to produce oil relies heavily on multinational oil companies. At the time of its founding, TCO was a fifty-fifty partnership between Chevron and the state-owned KazMunayGas. Since then, ExxonMobil and the Russian oil company LukArco have joined the venture, but only KazMunayGas’s share has been diluted.

While the country would struggle to take advantage of its oil-rich lands without the help of these foreign partners, the partnership is far from a win-win deal. Chevron keeps a tight grip on power, appointing most members of TCO’s upper ranks. The power dynamic was clear at the workshop: lower-level employees were Kazahkstanis while management was almost entirely American. The local economy has also completely aligned itself with the needs of the American-dominated TCO. TCO proudly announced in Q1 of 2019 that it spent over $1 billion on Kazakhstani goods and services, which includes hiring more than forty thousand local workers to work in the oil field. But this makes local businesses highly dependent on TCO. If American oil companies pulled out of the venture or slashed funding, TCO would crumble, and many businesses would lose their biggest (and often only) customer, leaving the economy in shambles.

Big Tech isn’t responsible for Kazakhstan’s reliance on oil. Nor can we blame it for the climate catastrophe that we’re facing. But it is certainly exacerbating both. While Kazahkstan’s economy may benefit in the short run, intensifying the climate disaster will ultimately hurt the country too. Research shows that the region will suffer from increased aridity and more frequent heat waves, which could decrease crop yields and challenge food security.

this is insane

—p.27 Oil is the New Data (15) missing author 4 years, 1 month ago