Stability trumps rivalries in Caspian

INDIANA, Pa., June 25 (UPI) -- The energy rivalries between Europe, Russia and China center on Caspian energy suppliers, but regional stability trumps regional disputes, analysts say.

Azerbaijan, Kazakhstan and Turkmenistan, as well as other regional energy giants, have emerged at the center of the race to secure oil and gas commitments.

China, with is bullish economy, holds an advantage in terms of cash reserves, while Europe brings technological superiority to the table. Meanwhile, Moscow can look to its historic relationship in the region as an influential factor in securing energy commitments.

China has the fastest-growing economy in the world, boasting of relative financial prosperity as the world economy suffers under recession. Caspian and Central Asian suppliers, therefore, are an attractive option to fuel economic growth.

Europe, for its part, is looking to ease its energy dependence on Russia, pinning its hopes on the Nabucco gas pipeline, which relies in part on key gas reserves in Azerbaijan and the general Caspian region.

For Russia, the Gazprom energy monopoly continues its push into foreign markets, signing agreements in early 2009 with the State Oil Co. of the Azerbaijan Republic.

But despite the race into the Caspian region and Central Asia, promoting cooperative stability in the emerging energy-producing region trumps political maneuvering, which may negate any regional benefits, writes Indiana University of Pennsylvania's Gawdat Bahgat in the online Oil and Gas Journal.

"Instead of dividing the region into spheres of influence, Europe, Russia, China, and the U.S. would benefit more by promoting political stability and economic prosperity," he notes. "Energy should not be seen as a zero-sum game."