Pipeline Diplomacy: The Geopolitics of the Caspian Sea Region

The Caspian Sea region is important to world energy markets because it holds large reserves of undeveloped oil and natural gas. In order to fully utilize these resources several challenges need to be addressed. These include an accurate assessment of the region’s hydrocarbon resources; rivalries between regional and international powers; domestic ethnic conflicts; and lack of appropriate export routes. This study examines these four obstacles. It argues that the region could help increase world energy security by diversifying global sources of supply; however, the notion that the Caspian’s oil and gas can be the panacea to long-term global energy security is misguided.