China and Energy Resources in the Caspian Sea Region

Abstract In recent years, China has been motivated to invest in oil and gas fields of the Caspian Sea. This motivation is indicated by participation or operation of the Chinese companies in the huge projects of exploration of oil and gas as well as in the construction of a pipeline in Central Asia. As an example, the China-Kazakh oil pipeline can be considered as the biggest Chinese investment in the region. This project will play a crucial part in the future of energy supply to China. There are some elements influencing Chinese motivation to exploit Caspian Sea’s energy resources. The first element is instability in the energy market and high rates of dependence on main energy producers such as the Persian Gulf ones. Because of these problems, China tries to diversify its energy resources. The next element is good economic, diplomatic and military relationship between China and the littoral states of the Caspian Sea (Iran, Russia, Turkmenistan, Azerbaijan and Kazakhstan) that help to secure energy transit to China.