ABSTRACT
The Caspian Sea has been characterised as the next Persian Gulf. This is a wildly exaggerated evaluation of the region’s potential. It holds 10 billion barrels of proven oil reserves, and an estimated additional 50-70 billion barrels of recoverable oil. This amounts to 4-6 per cent of the world’s proven oil reserves, currently estimated at 1,034 billion barrels.1 With respect to natural gas, the Caspian contains around 10-18 trillion cubic metres of proven reserves, i.e. 7-10 per cent of the world’s proven gas reserves. Oil is easier to extract and transport, which is why oil is set to lead Caspian energy development in the following decade.
