Baku
Russia and Georgia: All About Oil

Russia and Georgia: All About Oil

In commenting on the war in the Caucasus, most American analysts have tended to see it as a throwback to the past: as a continuation of a centuries-old blood feud between Russians and Georgians, or, at best, as part of the unfinished business of the Cold War. Many have spoken of Russia’s desire to erase the national “humiliation” it experienced with the collapse of the Soviet Union 16 years ago, or to restore its historic “sphere of influence” over the lands to its South. But the conflict is more about the future than the past. It stems from an intense geopolitical contest over the flow of Caspian Sea energy to markets in the West.

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As U.S. Energy Sources Decline, Russian and Caspian Sea Oil Won’t Solve Supply Problem

The United States now stands at a critical juncture in the evolution of its energy policy, particularly with respect to petroleum and natural gas consumption. The demand for energy in this country has been rising steadily over the past years as a result of continued economic growth and the vital role of air, ground, and sea transportation in all aspects of economic activity. According to the U.S. Department of Energy (DoE), total energy use in the United States grew by 16 percent between 1990 and 2002, and is projected to grow by another 35 percent between 2002 and 2025. At the same time, many other countries, both developed and developing, have also experienced an increased need for energy, pushing total world energy use from 348 quadrillion BTUs in 1990 to a projected 645 quadrillion BTUs in 2025, an increase of 85 percent.

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