Kazakhstan and Azerbaijan: Great Potentials for energy diversification in the Caspian Sea

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Essay from the year 2017 in the subject Politics - International Politics - Region: Russia, grade: 8, , language: English, abstract: This paper argues that Azerbaijan strength is its key geostrategic position, while Kazakhstans strength is its abundance of energy resources. However the heavy dependence on the energy sector makes both countries victims to fluctuating oil and gas prices. While Azerbaijan is reluctant to reform, Kazakhstan is more concrete in increasing the amount of renewables in its energy industry and more ambitious in adapting its tariffs to the decreasing oil prices on the world market. Thus, it is possible that Kazakhstan will attract more investment and growth in the long-run. This paper is structured as follows: firstly, a background outlines the historical development of the Caspian Sea region. Secondly, a theoretical part discusses the approach used to analyse Azerbaijan and Kazakhstan, outlining the factors identified by IEA. Thirdly, in an analytical part, the theoretical framework by the IEA is applied to both countries.

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