Sunday, March 31, 2013

Inside The Kingdom Of Ignorant Disinformation


Did you ever wander how it would feel like to attend a lecture on Shakespeare given by an illiterate? A lecture on the theory of Relativity given by a career floor sweeper? A lecture on brain surgery given by a witch doctor? Well, my friend, if you wish to get a sense of how you would feel to be in a situation such as those, all you have to do is read the articles which are written about Egypt these days, and published in the North American media.

One such article is titled: “Short of Money, Egypt Sees Crisis on Fuel and Food.” It was written by David Kirkpatrick and published in the New York Times on March 31, 2013. This man has been writing about Egypt for several years now, and he seems to have filed the current piece from the province of Qalyubeya in Egypt. Thus, you expect him to know better than what he is reporting.

Yes, he can be forgiven for choosing to talk to the people in opposition and get their views more than the people standing on the side of the government. And yes, it can be said that he made the effort to represent both sides of the argument. But where he cannot be forgiven is on the matter of verifiable facts that he so grotesquely mutilated. He did so not because someone he interviewed said something false but because he decided to echo the poison pills which are manufactured by the “Hate Egypt” propaganda machine that is based in the kingdom of ignorance known as the New York/Tel Aviv axis of disinformation.

Look how he does that: “Energy subsidies make up as much as 30 percent of Egypt's government spending, said Ragui Assaad,” which is correct and Kirkpatrick should have stopped here but he did not. Instead, he added the following on his own: “The country imports much of its fuel, and for the first time last year it was forced to import some of the natural gas used to generate electricity – the reason for the recent blackouts.” This is not only confusing but deliberately misleading.

The confusion stems from the fact that the writer does not know that natural gas is classified as fuel. Thus, if the country imported “some” of it last year, it means it would not be importing “much” of its fuel. If the journalist had bothered to educate himself on this subject, he would have known that on a yearly basis, Egypt uses the equivalent of one and a half tons of coal per person. That would be roughly the equivalent of one ton of crude oil or a little more than 7 barrels of it.

Some of that fuel comes in the form of hydroelectric power, solar, wind and coal. The rest comes in the form of petroleum products (about 30 million tons) and natural gas (about 35 million tons.) Most of this energy is produced locally by companies that are purely Egyptian or joint ventures with foreign partners. As it stands now, Egypt buys the share of the foreign partners, and pays for it. This is why such transactions are classified as imports.

Kirkpatrick could be forgiven for not knowing this much. But where he cannot be forgiven – even called a hopelessly ignorant jackass by choice – is when he writes something like this: “Diesel fuel is the crux of the crisis, in part because Egypt has no refineries and relies entirely on imports.” The fact is that Egypt has 9 refineries with a capacity of a little under a million barrels a day. The country needs about 750,000 barrels of refined products a day which is supplied more or less from the local production of crude.

The problem that Egypt has is the same that every country which owns a refinery has. It is that crude oil refines into myriad products, the quantities of which you can manipulate (by cracking) but only to a certain extent. For example, a barrel of oil whose weight may vary between 145 and 160 kilograms depending on the quality, would refine by weight into 50 percent chemicals and 50 percent fuels ranging from the high octane gasoline to fuel oil. Between these two come the diesel, the jet fuel, the kerosene and the rest.

Depending on the kind of economy that a country has, it could be using more gasoline than diesel while another country could be using more diesel than gasoline. Because neither of them can produce enough of what it wants even though they both have access to plenty of crude, they swap gasoline for diesel. Egypt does that in most part with Italy, and comes out with a surplus of about 4 billion dollars a year because it exports more high octane gasoline than it imports diesel fuel.

Then there is the fact that the problem of refining crude petroleum into the desired products intersects with the problem of the choices that you make when using natural gas as fuel or using it as ingredient to make chemical products such fertilizers, insecticides and the like. Making chemicals is more lucrative but there is also the fact that in Egypt, 70 percent of the electric power on the national grid is produced by co-generation stations that use diesel and/or natural gas. Thus, a shortage in one can result in a shortage in the other, and the choices that you are required to make each day are difficult ones.

The current difficulties in Egypt seem to have been aggravated not because the supplies were diminished but because the demand had increased. It so happened that after the Revolution of two years ago, everybody got a raise in the order of 25 percent or better. They all rushed to buy appliances – all of which use electricity. This increased the demand for power to something like 10 percent a year when the previous averages were in the order of 6 or 7 percent. And that required more natural gas and more diesel fuel.

Then, there is another thing which puts David Kirkpatrick firmly in the category of the hopelessly ignorant jackass. It is this: “Egypt also imports about 75 percent of its wheat, mixing the superior import wheat with lower-quality domestic supplies to improve its subsidized bread.” The fact is that with an arable patch of land that is in the order of one percent of America's patch, Egypt feeds a population that is 25 percent that of America. It manages to do this well because it has the highest yield of products per acre. And a higher yield means a higher quality. Only a hopeless jackass can be ignorant of this fact and of other associated facts.

One associated fact is that Egypt does not import 75 percent of its wheat. It is expected to consume 14 million tons this year, and the goal has been to produce 10.5 million tons which means produce 75 percent locally, not import that much. The production last year was 9.5 million tons, and if the weather cooperates this year, the harvest may well get to 10.5 million tons. Otherwise, it may only be 9.75 million tons.

There is so much more to say in this regard, and I am certain I'll be saying them in the future because the jackasses abound out there, and they will provoke me enough to say them.