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May 26, 2005

Azerbaijan's New Pipeline

Bill Rice at The Fourth Rail notes an important milestone in petro-political-geopgraphy--the opening of a new oil pipeline from the Caspian sea to the Mediterranean. The pipeline has several important advantages: it doesn't traverse the Middle East; it will stimulate oil production in Azerbaijan; and it will help augment and stabilize the international oil market.

Also very important from a political standpoint is the impact US support of the pipeline has had on Azerbaijan. Rice concludes:

With a current GDP of roughly $30 billion, the oil pipeline, which cost over $3.6 billion to build will contribute a substantial gain to the country's fortunes and help bring stability to a former Soviet State while increasing Georgia's wealth as well. [...]
Such diplomatic and capitalist triumphs are important to take note of for they demonstrate models of constructive multi-country engagement and economic improvement that support long term democratic change.

The more free markets, the better.

Posted on May 26, 2005 12:54 AM

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Comments

Thanks for linking to the Fourth Rail on the Azerbaijan post. The US is often taken to task by domestic and foreign medias for not being a constructive partner or building goodwill with foreign governments.

This is an example of a benefit to the region which took a good deal of important negotiations yet will benefit all and promote stability.

Kind regards,

Bill Rice

Posted by: Bill Rice at May 26, 2005 01:55 AM

Thanks, just trying to do my part. Sites like The Fourth Rail and Winds of Change represent the best of the blogosphere, IMO.

Posted by: Jeff at May 26, 2005 09:42 AM

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