The Caspian Sea and its energy resources have elevated the region to a place of significant international importance. Forecasts indicate the presence of approximately 48 billion barrels of oil and 292 tcm (trillion cubic metres) of natural gas in proven and probable reserves. Three Caspian Sea littoral countries—Azerbaijan, Kazakhstan, and Turkmenistan—boast significant energy resources. They currently export oil and gas to European and Mediterranean markets and are, to varying extents, pursuing efforts to increase their contributions.
European companies show increasing interest in the region’s energy market, but their involvement remains at an early stage. Notable firms such as BP, TotalEnergies, Siemens Energy, Equinor and ENI are exploring opportunities to expand their presence. Although the Caspian coastal countries have the potential to strengthen European energy security, economic and infrastructural challenges could impede the swift production and export of additional supplies from the region. Securing financing for oil and gas production and transportation has become increasingly challenging, as international financial institutions are curtailing funding for fossil fuel projects, and the European Commission is ramping up investments in the energy transition, focusing on renewables and green hydrogen.
Author: Luca Urciuolo, EIAS Associate Research Fellow
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