Two sides of the same sea: The Caspian region presents lucrative but different visions for oil and gas investment

摘要

The Caspian Sea, the largest inland body of water on earth, separates what are undoubtedly the two oil giants of the region, Azerbaijan and Kazakhstan. The Caspian region has become a central focal point for untapped oil and natural gas resources and contains an estimated 10% of the earth's potential oil reserves. The major projects that have contributed to this enviable position have been Tengiz and Karachaganak in Kazakhstan and Azerbaijan's Azeri, Chirag, and Guneshli fields. Natural gas reserves in the Caspian region are proven at more than 236 Tcf, and the regions total oil reserves are reported to constitute more than 60 Bbbl of oil, with some estimates as high as 200 Bbbl. With the aid of substantial foreign investment, the region produced 4.5 MMb/d in 2010, compared to just 870,000 b/d in 1995. While no doubt a remarkable achievement, the bulk of potential remains largely untapped.