A Sea of Oil

Proven reserves of Caspian oil and natural gas amount to 4 percent of the world supply. International Energy Agency analysts estimate that the regions oil reserves may prove to be 20 percent of the world supply. Experts in a U.S. Congress research group note that, besides the size of the reserves, Caspian oil has the advantage of being cheap to produce. Only Middle Eastern oil can compare to it in both those respects.

Four major forces are gathering around the Caspian. They are China, Russia, the United States and the EU. Several factors limit investors at present: Russia’s control over most of the delivery routes to Europe, an undeveloped infrastructure and political risks that are mainly connected with the Iranian nuclear program.
Kommersant