Azerbaijan Oil Pipeline

Imports supply roughly half of our oil needs, and an even greater share of the needs of some of our most important allies and economic partners.We are no longer self-sufficient in natural gas. We now import 15 percent of our natural gas, almost entirely from Canada, but in growing volumes from Trinidad and other LNG [liquefied natural gas] suppliers.Two-thirds of proven world oil reserves are in the Middle East. In contrast, the United States has 2 percent of proven world oil reserves. ... [Read More]

Joseph A. Stanislaw, "Energy Competition or Cooperation: Shifting the Paradigm," Economic Perspectives, May 2004

Growing political cooperation in the energy arena has brought about promising, business-backed projects in recent years. The Baku-Ceyhan oil pipeline — undertaken by BP of the United Kingdom, the State Oil Company of the Azerbaijan Republic, Unocal of the United States, and Norway's Statoil — now connects oil production in the Caspian Sea with demand in Europe and beyond through export facilities at Ceyhan, Turkey. And future plans for natural gas production from Russia's vast Sakhalin Island deposits include exports to Japan, possibly China, and perhaps even the West Coast of the United States. For both projects, the forces driving cooperation are governmental involvement and the reality that a supply source without a market has no value. ... [Read More]

Department of State Washington File: Text: Policy Group Recommends Stronger Global Energy Alliances

The report says the United States should work through the International Energy Agency (IEA) to ensure that net oil-importing member states have at least 90 days of oil reserves and to encourage major oil-consuming countries to develop strategic oil reserves. It urges more international cooperation on finding alternatives to oil, especially for transportation. ...

The NEPD Group recommends that the President direct the Secretaries of Commerce, State, and Energy to continue working with relevant companies and countries to establish the commercial conditions that will allow oil companies operating in Kazakhstan the option of exporting their oil via the BTC pipeline. ... [Read More]

US Department Of State Post Report

In November 1999, Azerbaijan signed an agreement with Turkey and Georgia to transport Azerbaijani oil to international markets via a Baku-Tbilisi‑Ceyhan main oil export pipeline to the Mediterranean. In October 2000, the State Oil Company of the Azerbaijan Republic (SOCAR) together with BP, Unocal, Chevron and other foreign oil companies formed a sponsor’s group for the project. In March 2001, the presidents of Azerbaijan and Turkey signed a gas purchase agreement for Azerbaijani exports of gas to Turkey which will reach annual volumes of 6.6 billion cubic meters by 2007. Oil, gas and pipeline development contracts expected to be signed by the end of 2002 should total $12 billion in new investment in Azerbaijan. ... [Read More]

U.S.-Turkey Joint Statement Reaffirming Strategic Energy Cooperation

The Baku-Tbilisi-Ceyhan pipeline is the centerpiece of the East-West Corridor. The two delegations welcomed the commencement of construction in April 2003 on the one-million-barrel-per-day, 1,760 km pipeline, which is now more than 40 percent complete. The first oil from this pipeline will be delivered to world markets in 2005. ...

Figure 1: Map of the Caucasus Region showing the approximate geographic courses of the Baku-Tbilisi-Ceyhan, Baku-Supsa, Baku-Novorossiisk, Caspian Pipeline Consortium, and South Caucasus oil pipelines. ... [Read More]

Azerbaijan

Azerbaijan continued to affirm its commitment to an economic transition from central planning to a free market; however, reforms stagnated in practice. Economic growth has been spurred by substantial foreign investment in the hydrocarbon sector, but it is offset by widespread corruption and patronage. While government statistics pointed to continued economic growth during the year, the real economy continues to be affected by a low level of foreign business activity due largely to low oil prices in 1999, a lack of oil industry infrastructure, widespread corruption and a deteriorating business climate. Consistently high oil prices appear to be reversing that trend. The country has rich petroleum reserves and significant agricultural potential. Oil and oil products are the largest export, followed by cotton and tobacco. Other key industries are chemicals and oil field machinery. The government signed new oil production sharing agreements with foreign oil companies and a group of eight oi ... [Read More]

U.S. Assistance to Azerbaijan – Fiscal Year 2004

U.S. Treasury Department advisors also provide technical assistance to the government on budget policy and tax administration. The U.S. continues to support American exports to and investment in Azerbaijan through the Overseas Private Investment Corporation (OPIC) and Export-Import Bank. A U.S. Trade and Development Agency (TDA) advisor assists the government with World Trade Organization (WTO) accession. TDA grants have also been signed to provide technical assistance to the State Oil Fund in asset management, to the government in developing a tourism strategy, and to restructure the state oil company, SOCAR. ... [Read More]

Azerbaijan (10/04)

Azerbaijan has concluded 21 production-sharing agreements with various oil companies. Eastern Caspian producers in Kazakhstan also have expressed interest in accessing this pipeline to transport a portion of their production. Partner sanctions of the Baku-Tbilisi-Ceyhan oil export pipeline was completed in August 2002 and construction awards were announced. Construction began in the second quarter of 2003, with completion projected by the end of 2004. A Baku-Tbilisi-Erzurum gas export pipeline was sanctioned in February 2003. ... [Read More]

Georgia Approval of the Baku-Tbilisi-Ceyhan Oil Pipeline

The United States welcomes the approval today by the Government of Georgia of the Baku-Tbilisi-Ceyhan (BTC) oil pipeline. Together with earlier approvals by the Governments of Azerbaijan and Turkey, today's action marks a significant milestone in the development of this project, which will bring welcome investment to Georgia as well as strengthen the sovereignty and independence of countries in the Caspian Basin.We strongly support the host countries and the project developers and commend them for devoting considerable attention to ensuring that the project adheres to the highest standards of environmental stewardship and that it generates economic opportunities for communities along the pipeline route.We look forward to continuing our close cooperation with all the partners in this project a ... [Read More]