Blowout cover

Blowout

Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth

byRachel Maddow

★★★★
4.39avg rating — 17,035 ratings

Book Edition Details

ISBN:0525575472
Publisher:Crown
Publication Date:2019
Reading Time:12 minutes
Language:English
ASIN:0525575472

Summary

A world where oil isn't just black gold, but a black hole sucking in integrity and democracy. Rachel Maddow, with her razor-sharp wit and piercing insight, unravels a tangled web spun by the oil and gas giants—a web that entraps everyone from glittering Michael Jackson auctioneers to opportunistic politicians in Equatorial Guinea. Maddow’s gripping narrative whisks us from Oklahoma’s tremors to Ukraine’s opulent absurdities, exposing the insidious influence of Big Oil on a global scale. Her incisive analysis reveals how Russia’s petro-fueled ambitions undermine Western democracies, while the West’s own complicity in this dance of greed threatens to erase hard-won liberties. "Blowout" isn’t just an exposé; it's a clarion call to defend democracy from the predatory instincts of an industry that devours nations. In Maddow’s hands, the story unfolds like a thriller, daring us to confront the lion before it devours us all.

Introduction

In the summer of 2003, a remarkable scene unfolded at a Manhattan gas station. Vladimir Putin, then seen as a reformist Russian leader, stood alongside American senators and oil executives, cutting the ribbon on Russia's first retail energy venture in the United States. The smiles were genuine, the handshakes firm, and the promise of a new era of energy cooperation seemed within reach. Two decades later, that same leader would weaponize energy exports against the West while waging war in Ukraine, revealing how profoundly oil and gas wealth can corrupt democratic institutions and international relations. This transformation from cooperation to conflict illuminates three critical historical patterns that have shaped our modern world. First, it reveals how energy wealth consistently concentrates political power in the hands of those least accountable to democratic oversight, from John D. Rockefeller's original monopoly to Putin's modern kleptocracy. Second, it demonstrates how technological breakthroughs in energy extraction, from early oil refining to hydraulic fracturing, have repeatedly rewritten the rules of global power while externalizing massive costs onto ordinary citizens and the environment. Finally, it exposes how the pursuit of fossil fuel profits has created a shadow foreign policy that operates beyond traditional governance, where corporate interests often trump national security concerns and democratic values. This account is essential reading for anyone seeking to understand why democratic institutions worldwide are under unprecedented pressure, how the climate crisis intersects with geopolitical conflict, and why our energy-dependent civilization seems increasingly unstable. It connects seemingly disparate phenomena from Oklahoma earthquakes to Russian election interference, revealing the hidden threads that bind our fossil fuel economy to the crisis of democratic governance itself.

Foundation of Power: Rockefeller's Template and Early Corporate Capture (1859-2000)

The story begins in 1859 with Edwin Drake's modest oil strike in Titusville, Pennsylvania, where twenty barrels a day would eventually reshape civilization itself. But it was John D. Rockefeller who truly grasped the transformative potential of this "rock oil" and created the template that would define energy politics for generations. By the 1890s, his Standard Oil Company controlled 90 percent of American oil refining, demonstrating for the first time how energy wealth could be systematically converted into political power on an unprecedented scale. Rockefeller's genius lay not merely in finding oil, but in understanding that controlling its refinement and distribution meant controlling governments themselves. His methods included bribing politicians, crushing competitors through predatory pricing, and establishing what he viewed as a natural monopoly over an essential resource. When the Supreme Court finally broke up Standard Oil in 1911, it didn't eliminate the industry's political influence but simply distributed that power among multiple companies that would continue to operate as a unified political force. The cultural DNA forged during these early decades would echo through the next century. The oil industry developed an institutional belief that government regulation represented illegitimate interference, that its own success justified any means necessary, and that it served a higher purpose beyond mere profit. This mindset reached absurd heights during the Cold War when the U.S. government actually provided oil companies with nuclear weapons for "peaceful" drilling experiments, including Project Rulison in 1969, where the Atomic Energy Commission detonated a 40-kiloton nuclear bomb beneath Colorado farmland to fracture rock formations for natural gas extraction. By 2000, American energy companies had perfected the art of privatizing profits while socializing risks. The development of hydraulic fracturing and horizontal drilling technologies, largely funded by taxpayer-supported research, created new opportunities for wealth extraction while the companies that profited bore none of the costs of environmental damage, health impacts, or seismic activity they generated. This pattern of corporate welfare disguised as free enterprise established the foundation for the energy industry's complete capture of democratic institutions in the twenty-first century.

Putin's Petro-Weapon: From Cooperation Dreams to Energy Authoritarianism (2000-2014)

Vladimir Putin's rise to power coincided with his recognition that oil and gas could serve as both the foundation of a new Russian empire and the perfect vehicle for personal enrichment. Unlike Boris Yeltsin, who had allowed oligarchs to pillage state resources chaotically, Putin understood that controlling energy meant controlling everything else. His systematic destruction of independent oil companies like Yukos and imprisonment of their owners like Mikhail Khodorkovsky sent an unmistakable message: in Putin's Russia, energy wealth belonged to the state, which effectively meant it belonged to Putin himself. The transformation of Russia into a petro-state required the systematic elimination of democratic institutions and the rule of law. Putin's security services, led by figures like Igor Sechin, weaponized the legal system to seize private energy assets and redistribute them to loyal cronies. The Yukos affair alone transferred over $100 billion in oil assets from private hands to state-controlled Rosneft, demonstrating how energy wealth could fund authoritarian consolidation on a massive scale while maintaining the fiction of legal proceedings. Putin's energy strategy extended far beyond Russia's borders, using gas supplies as tools of foreign policy and corruption as weapons of war. The construction of the Nord Stream pipeline under the Baltic Sea exemplified this approach, allowing Russia to supply European customers while bypassing potentially troublesome transit countries like Ukraine. By 2012, Russia was providing 40 percent of the European Union's natural gas imports, creating a dependency relationship that Putin believed would insulate him from Western criticism of his increasingly authoritarian rule. The Ukraine crisis of 2014 exposed the fatal contradictions in Putin's energy strategy. His annexation of Crimea and support for separatists triggered Western sanctions specifically designed to target Russia's energy sector, cutting off access to advanced drilling technology needed for Arctic and shale development. The tragic shootdown of Malaysia Airlines Flight 17 by Russian-supplied weapons galvanized European support for these sanctions, forcing companies like ExxonMobil to abandon promising Arctic drilling projects. Putin's attempt to weaponize energy had backfired spectacularly, leaving Russia more isolated and economically vulnerable than before, while creating a template for energy-based authoritarianism that would spread globally.

Fracking Revolution: Democratic Capture and Environmental Destruction (2008-2016)

The American fracking boom that erupted around 2008 represented more than a technological revolution—it marked the complete capture of American democracy by energy interests. Companies like Chesapeake Energy, led by the flamboyant Aubrey McClendon, used their newfound wealth to purchase politicians, regulators, and scientists wholesale. The industry's political influence became so pervasive that state governments like Oklahoma's essentially functioned as wholly owned subsidiaries of oil and gas companies, prioritizing corporate profits over public welfare with breathtaking audacity. The human and environmental costs of the fracking revolution were systematically hidden from public view through regulatory capture and scientific intimidation. When Oklahoma began experiencing unprecedented earthquake swarms linked to fracking wastewater injection, industry leaders like Harold Hamm personally intervened to silence state seismologists and suppress inconvenient research. The state that historically experienced perhaps one earthquake per year above magnitude 3.0 suddenly recorded hundreds annually, culminating in a record-breaking 5.7 magnitude quake that caused millions in damage while officials continued denying any connection to drilling activities. The industry's capture of state governments reached its logical conclusion in energy-producing regions where companies literally wrote their own tax laws and regulatory frameworks. While Oklahoma schools crumbled and teachers fled due to inadequate funding, energy companies enjoyed tax rates so low they essentially amounted to subsidies. The horizontal drilling tax break that Hamm championed cost Oklahoma hundreds of millions in revenue annually while providing no meaningful economic benefits to ordinary citizens, creating a grotesque inversion where public resources subsidized private wealth extraction. The fracking boom also demonstrated how energy wealth could corrupt democratic institutions at the federal level. Companies like ExxonMobil, led by Rex Tillerson, pursued foreign policies that directly contradicted American national security interests, making deals with sanctioned Russian officials while American principles of sovereignty came under assault. The industry's willingness to prioritize corporate profits over national interests revealed how completely it had escaped democratic control, operating as a shadow government with its own foreign policy agenda that would ultimately contribute to the breakdown of international cooperation and the rise of authoritarian influence in democratic societies.

Global Reckoning: Information Warfare and the Democratic Crisis (2014-2018)

The convergence of Putin's authoritarian ambitions and the American energy industry's anti-democratic practices reached its climax during the 2016 election interference campaign that exposed the fundamental vulnerabilities in democratic governance. Putin's recognition that his petro-state model was failing due to international sanctions led him to embrace information warfare as a tool for undermining Western democracy itself. The Internet Research Agency in St. Petersburg became a factory for producing the lies and divisions that would tear apart American political discourse, exploiting the same institutional weaknesses that energy companies had created through decades of regulatory capture. The Russian interference campaign succeeded beyond Putin's expectations, not because of sophisticated technology but because American democracy had already been hollowed out by corporate influence. The same political system that allowed oil companies to write their own regulations, silence inconvenient scientists, and trigger earthquakes with impunity proved helpless against foreign manipulation. Russian trolls found fertile ground in an information environment already poisoned by industry-funded climate denial and anti-government propaganda, amplifying existing divisions while creating new ones. The Trump administration's energy policies represented the complete triumph of industry interests over democratic governance. The appointment of Rex Tillerson as Secretary of State and the systematic dismantling of environmental regulations revealed how thoroughly the energy sector had captured the federal government. The administration's desperate attempts to lift sanctions on Russia, despite clear evidence of election interference, demonstrated the lengths to which energy interests would go to protect their profits, even when those profits came at the expense of national security and democratic integrity. Yet the same period witnessed remarkable examples of democratic resistance that proved accountability was still possible when citizens organized effectively. Oklahoma teachers forced their captured state government to finally tax the energy industry fairly, while federal prosecutors exposed the full scope of Russian interference despite intense political pressure. These victories, however limited, demonstrated that the energy industry's capture of democratic institutions was not inevitable and that ordinary citizens could still reclaim control when they understood the stakes and demanded transparency from their representatives.

Summary

The historical arc revealed in this account demonstrates the fundamental incompatibility between concentrated energy wealth and democratic governance. From Rockefeller's original monopoly to Putin's modern kleptocracy, the pattern remains consistent: those who control energy resources inevitably seek to control political systems, transforming governments into instruments of private enrichment rather than public service. This dynamic has created a global crisis of democratic legitimacy that threatens the very foundations of free society, as energy companies operate beyond the reach of traditional oversight while externalizing massive costs onto ordinary citizens and the environment. The convergence of American energy industry practices with Russian authoritarian methods during the 2016 election represents a watershed moment in this longer history. Putin's information warfare succeeded precisely because American democracy had already been weakened by decades of corporate capture, creating vulnerabilities that foreign adversaries could easily exploit. The same political system that allowed companies to poison groundwater, trigger earthquakes, and silence scientists proved incapable of defending itself against external manipulation, revealing how energy industry corruption had undermined the institutional foundations necessary for democratic resilience. Yet this dark history also illuminates the path toward democratic renewal. The successful resistance of teachers, journalists, and prosecutors demonstrates that corporate capture is not inevitable when citizens understand the stakes and organize effectively. Reclaiming democratic control will require unprecedented transparency in energy industry operations, strict limits on corporate political influence, and recognition that addressing the climate crisis demands a fundamental restructuring of our energy system. The choice before us is clear: either we constrain the power of the energy industry through democratic action, or it will continue undermining free government until democratic governance becomes impossible. The stakes could not be higher, but the path forward remains open to those with the courage to demand accountability from the forces that have captured our political system.

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Book Cover
Blowout

By Rachel Maddow

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