The Caspian is destined to play an important role in future Western energy security. Although it will not eclipse the Gulf region as a prime energy supplier, it is likely to prove large enough to replace eventually some traditional western sources, such as the North Sea. Oil from there has been a major factor in moderating western energy prices over the past two decades.
The potential of the Caspian is underlined by the huge promise of the Kashagan oil field, where the Offshore Kazakhstan International Operating Company (OKIOC) consortium is undertaking exploratory drilling off Kazakhstan’s coast and by the world class Shah Deniz gas field off the coast of Azerbaijan, now being developed by a consortium led by BP Amoco.
