Summary of the Baku-Ceyhan Pipeline
MBA 660
Summary of the Baku-Ceyhan Pipeline
Introduction
The intense negotiations between different nations and firms have been a major issue of the international oil industry. The key problem of this issue is the transportation of crude oil from the Caspian Sea. The author of this article discussed primary about a pipeline project cross Azerbaijan, Georgia, and Turkey. In his analysis, the complexity of this pipeline project is high because of its geography problems and political situations.
The setting- The Oil Issue and the Geographic Context of the Caspian Sea Region
Oil’s importance to this world economy is incredible, so the oil company must pay highly attention about the supply and demand for oil. The authors cited some statistics showing that “the three major areas of oil consumption are North America, Europe, and Asia Pacific and that the two major areas of production are North America and the Middle East” (The Baku-Ceyhan Pipeline, pg.5). Focusing more on the pipeline project, he also gave the fact that “the region appears to have one percent or slightly more of the world’s known oil reserves” (The Baku-Ceyhan Pipeline, pg.5). Then a question about the development of a pipeline project on the Caspian Sea region is raised, and the author answered in three parts. First, the pipeline project is a tactical solution for the transportation of oil from Caspian Sea to Europe and Asia Pacific markets. Second, the pipeline is a strategic plan for oil companies to increase the supply and secure their positions. Third, the pipeline is a way for the United States to put their influence in this region.
In addition, the author considered and analyzed many alternatives about the route of the pipeline. After analyzing the difficult relationship between those nations in that region, he insisted that “the Azerbaijan-Georgia-Turkey route seems to be the most pacific” (The Baku-Ceyhan Pipeline, pg.8). However, the earthquake prone becomes another problem for the
Summary of the Baku-Ceyhan Pipeline
Introduction
The intense negotiations between different nations and firms have been a major issue of the international oil industry. The key problem of this issue is the transportation of crude oil from the Caspian Sea. The author of this article discussed primary about a pipeline project cross Azerbaijan, Georgia, and Turkey. In his analysis, the complexity of this pipeline project is high because of its geography problems and political situations.
The setting- The Oil Issue and the Geographic Context of the Caspian Sea Region
Oil’s importance to this world economy is incredible, so the oil company must pay highly attention about the supply and demand for oil. The authors cited some statistics showing that “the three major areas of oil consumption are North America, Europe, and Asia Pacific and that the two major areas of production are North America and the Middle East” (The Baku-Ceyhan Pipeline, pg.5). Focusing more on the pipeline project, he also gave the fact that “the region appears to have one percent or slightly more of the world’s known oil reserves” (The Baku-Ceyhan Pipeline, pg.5). Then a question about the development of a pipeline project on the Caspian Sea region is raised, and the author answered in three parts. First, the pipeline project is a tactical solution for the transportation of oil from Caspian Sea to Europe and Asia Pacific markets. Second, the pipeline is a strategic plan for oil companies to increase the supply and secure their positions. Third, the pipeline is a way for the United States to put their influence in this region.
In addition, the author considered and analyzed many alternatives about the route of the pipeline. After analyzing the difficult relationship between those nations in that region, he insisted that “the Azerbaijan-Georgia-Turkey route seems to be the most pacific” (The Baku-Ceyhan Pipeline, pg.8). However, the earthquake prone becomes another problem for the