While the U.S. oil sector is struggling to meet the Y2K deadline, even with the foresight to recognize the problem and the resources to do something about it, the situation in other oil-producing countries is more problematic. Russia exports roughly 6 out of every 10 barrels it produces. Based on conversations between members of the CSIS Risk Assessment Task Force and senior Russian officials on the subject, it is clear they recognize there is a problem, particularly in the areas of software applications and embedded systems. And there is no money in the budget for that purpose. Time is running out.
Natural gas presents similar problems.
All the pipeline compressor stations and valves worldwide are not going to be compliant. Natural gas is not a globally traded commodity on a scale comparable with oil. Nonetheless, Russia is the world's largest trader in natural gas, with the bulk of its exports directed to Europe, where these volumes provide a significant contribution to gas supply. That concern now resurfaces, but for an entirely different reason. The electric power industry is much the same.