ABSTRACT
This chapter focuses on Caspian oil output and Turkey's projected key role in the exportation and the impact on tanker demand. Caspian oil is expected to be marketed mostly within Europe as its physical specifications are suited to the European Union's environmental standards. The Caspian Region is a geographically landlocked area located in west Asia and includes Georgia, Azerbaijan, Kazakhstan, Turkmenistan, Uzbekistan, Iran and the Russian Federation. A market for 322 million tons of oil exists in Europe where Azerbaijan and Kazakhstan oil can compete and take its share. For a landlocked region like the Caspian, the most rational solution seems to be pipeline transportation. The Baku-Ceyhan pipeline project strengthen the strategic position of Turkey, as the country carry the most important oil route between oil producing Asia and demand centred Europe. Turkey has the chance to house three of the five transportation modes; namely road, sea and pipeline transport, as a result of its geographical and infrastructural characteristics.
