OIL AND GAS IN THE CASPIAN: CURRENT SITUATION AND FUTURE PROSPECTS

Abstract

After the disintegration of the Soviet Union in 1991 high hopes and expectations arose concerning production possibilities of oil and gas in the Caspian region, which encompasses territories of five states-Russia, Kazakhstan, Turkmenistan, Iran and Azerbaijan. These expectations were to some extent fomented by local governments and businesses, which were eager to incite interest as well as investments of Western companies; the governments realized soon enough that they are economically dependent on extraction of energy resources. At that time the Caspian was often considered as possible future competitor of the Middle East in terms of energy supplies. The so-called "Great Game," in which Great Britain, Russia and China competed for influence in Central Asia throughout the 19th century, unfolded anew with novel variations. This time different actors sought access to and control over the development of energy resources and related transit corridors. Competing actors included international oil-producing companies, states in the region, governments of European countries, the U.S. and the EU. In recent years China became very active in this respect as well.