Kazakstan Cited as Key to US Energy Needs
Kazakstan Cited as Key to US Energy Needs
Even though a new report by an influential United States senator lists Kazakstan as a priority area for American energy policy, NBCentralAsia analysts say that for now, at least, the country's importance as an oil supplier is overplayed.
Following his visit to Kazakstan, Azerbaijan and Georgian last month, Republican senator Richard Lugar has published a report in which he describes Caspian states as critical to US energy policy. He underlined the importance of having oil and gas export routes out of Kazakstan that bypass both Russia and the Middle East.
The report comes shortly before Kazak president Nursultan Nazarbaev's trip to Washington, scheduled for September 26-29.
NBCentralAsia's energy experts argue that Senator Lugar, who heads the Senate Committee on Foreign Relations, was expressing a view based more on political considerations than on the true significance of Caspian hydrocarbons in US energy security.
One such consideration might be Senator Lugar's critical views on Russian energy policy. In an August 29 speech to an energy conference in Indiana, Lugar described Russia as “a hostile regime” that uses energy supplies as leverage against its neighbours. His remarks prompted a rebuff from the Russian foreign ministry.
Political experts tell NBCentralAsia that the report's central message – that Kazak oil and gas should not be exported via Russia or the Middle East – is intended for the political elite in Astana.
In a section dealing with Russia, Lugar's report makes it clear the United States intends to defend its political interests in the region in the face of the increasing influence of Moscow and Beijing, specifically the rise of regional security groupings like the Collective Security Treaty Organisation and the Shanghai Cooperation Organisation, SCO.
The report also discusses the Middle East, and here NBCentralAsia analysts say the message is all about how Kazakstan should not cooperate with Iran on energy matters. At a recent SCO meeting in Dushanbe, the Kazaks discussed building an oil refinery in Iran, although some energy experts argue that the proposal is little more than strategic manoeuvring by Astana, since there are technical factors that make it highly unlikely that Kazakstan could export oil to Iran.
Right now, Kazakstan does not sell oil to the US. Even if that changes, Kazak oil exports are not going to be substantial enough to play a decisive role. The Kazak government's project to build oil production up to an annual 100-150 million tons by 2015 is, for many energy-watchers in Kazakstan, far too ambitious – not least since commercial extraction at the major Kashagan field has now been delayed.
(News Briefing Central Asia draws comment and analysis from a broad range of political observers across the region.)
Following his visit to Kazakstan, Azerbaijan and Georgian last month, Republican senator Richard Lugar has published a report in which he describes Caspian states as critical to US energy policy. He underlined the importance of having oil and gas export routes out of Kazakstan that bypass both Russia and the Middle East.
The report comes shortly before Kazak president Nursultan Nazarbaev's trip to Washington, scheduled for September 26-29.
NBCentralAsia's energy experts argue that Senator Lugar, who heads the Senate Committee on Foreign Relations, was expressing a view based more on political considerations than on the true significance of Caspian hydrocarbons in US energy security.
One such consideration might be Senator Lugar's critical views on Russian energy policy. In an August 29 speech to an energy conference in Indiana, Lugar described Russia as “a hostile regime” that uses energy supplies as leverage against its neighbours. His remarks prompted a rebuff from the Russian foreign ministry.
Political experts tell NBCentralAsia that the report's central message – that Kazak oil and gas should not be exported via Russia or the Middle East – is intended for the political elite in Astana.
In a section dealing with Russia, Lugar's report makes it clear the United States intends to defend its political interests in the region in the face of the increasing influence of Moscow and Beijing, specifically the rise of regional security groupings like the Collective Security Treaty Organisation and the Shanghai Cooperation Organisation, SCO.
The report also discusses the Middle East, and here NBCentralAsia analysts say the message is all about how Kazakstan should not cooperate with Iran on energy matters. At a recent SCO meeting in Dushanbe, the Kazaks discussed building an oil refinery in Iran, although some energy experts argue that the proposal is little more than strategic manoeuvring by Astana, since there are technical factors that make it highly unlikely that Kazakstan could export oil to Iran.
Right now, Kazakstan does not sell oil to the US. Even if that changes, Kazak oil exports are not going to be substantial enough to play a decisive role. The Kazak government's project to build oil production up to an annual 100-150 million tons by 2015 is, for many energy-watchers in Kazakstan, far too ambitious – not least since commercial extraction at the major Kashagan field has now been delayed.
(News Briefing Central Asia draws comment and analysis from a broad range of political observers across the region.)
