Caspian Sea Could Become Natural Gas Hub

September 4, 2013

The Caspian Sea is an ancient oil producer, but its future may be in natural gas, the Fuel Fix blog reports.

The commodity that fuels electric power is becoming a much more prominent driver of energy production in the large body of water north of Iran and south of Russia, a region that produced 3.4 percent of the world’s oil supply last year, according to a recent report from the Energy Information Administration.

Since 2006, Azerbaijan and Kazakhstan, which border the Caspian’s west and east coasts, have led a boost in natural gas production in and around the region, where coastal countries extracted a total 2.5 trillion cubic feet of natural gas in 2011. That’s up from about 1.25 trillion cubic feet in 2000 and about 1.75 trillion in 2006.

Each of the Caspian’s coastal countries has sizable discovered natural gas fields, one indication that the region’s energy production growth will come from natural gas in the future, according to the EIA.

Meanwhile, annual oil production in the Caspian Sea has edged down in recent years, declining from about 2.7 million barrels of oil in the peak year of 2010 to about 2.6 million in 2012.

Copyright, Fuel Fix, 2013.