Energy Politics and Security in Kazakhstan After Soviet Union collapsed, Kazakhstan’s economy and political interests have faced major problems. The economy which was highly integrated has now disintegrated from inter-republic ties. However, if the larger oil fields of Kazakhstan can be properly unitized then it can be one of the top oil production countries in this world…
Download full paperFile format: .doc, available for editing
Extract of sample "Energy politics and Security in Kazakhstan"
Download file to see previous pages
Energy Sector in Kazakhstan The infrastructure of energy production in Kazakhstan is underdeveloped as a result of being part of former Soviet Union which strived to “optimize energy supply within member states rather than to achieve self sufficiency in the energy supply of each member state”. Post independence Kazakhstan had to depend heavily on energy exports for economic development. However, this dependence on energy sector caused wide disparities of income between the rich and the poor. As part of solution, Kazakhstan is bringing the oil and gas sector under the ownership of the government (Doi, 2-3). Oil Industry Restrictions from Russia Kazakhstan faces a major problem regarding the full development of its oil export industry. The oil from this country can be exported only on routes through other countries. Currently, the only route that is economic and viable goes through Russia. Russia has however imposed partial restrictions through its Transneft pipeline system. One-third of Kazakhstan’s current oil export capacity cannot move through Russia. The oil industry of Russia has also demanded a share in the profit by 30 percent from all oil exporting countries in the former Soviet Republics. The development program for Tengiz field has been postponed because of such demands and restrictions imposed by Russia. There have been considerations of using pipelines of other countries like Iran and Russia, but they are politically unviable and will take a long time. Also, Turkey will not allow movement of larger number of oil tankers that are necessary for utilization of full export capacity of Kazakhstan. In addition, oil industry requires high amount of capital investment so positive results cannot be achieved in the short run (Office of Technology Assessment, 139). China as export route China lies in the eastern border of Kazakhstan and is a major market for its oil reserves. China has introduced a ‘non-commercial element’ in the field of oil export competition for Kazakhstan. In 2004, China constructed its first oil pipeline to encourage exports from other countries. In August, 2005, China signed a deal for acquiring PetroKazakhstan for the valuation of $4 billion. It is an oil company that is based in Canada and has all its activities within Kazakhstan. Since then China holds the second position of being the largest oil producer in Kazakhstan after the latter’s national oil company. With China as an oil export route, Kazakhstan has faced positive evolution in its oil industry as supply to the world market has increased (Committee on Foreign Relation, 44). Natural gas There has been a steady increase in the production of natural gas which has transformed Kazakhstan from net gas exporter to a net gas importer. Development in the natural gas sector has been lagging behind oil because of insufficient ‘domestic gas pipeline infrastructure’ that links the gas production countries in the West to industrial region in the East. Also, there have been insufficient export pipelines. This has been a major issue as Kazakhstan does not have access to seaports. However, in 2014 when Kazakhstan-China gas pipeline will be completed, gas can be transported to the industrial region of Kazakhstan. This will also enable Kazakhstan to export gas to other countries. China and Russia are the important export partners of
...Download file to see next pagesRead More
At the same time, the human needs for energy cannot be ignored. In countries with an extremely high population, such as China or India, allocating and securing energy could be considered as the most critical concern of the local governments. It should be noted that the distribution of energy sources worldwide is not equal, meaning that there are countries with high reserves of various forms of energy, or high potentials to produce energy, while for other countries the access to energy is problematic (Muller-Kraenner 2008).
The former, maintain several military bases in the region while the European Union has adopted a more active policy of engagement that sought to gain influence in the development in the region today and the future. This kind of interest is triggered by several factors.
Link your answer to the concept of energy security. Energy security has been a rising concern for most of the world’s countries as prolonged disruptions in the supply of energy could potentially result to serious economic upheavals. Energy security, as defined by the International Energy Agency (IEA), entails energy supply that is reliable, affordable and adequate (Olz, Sims, and Kircher, 2007, pp.13).
The Constitution of the Republic of Kazakhstan contemplates a democratic, legal, and secular state that respects the basic freedom and rights of all individuals. With a population of over 17 million and a per capita GDP of $12,843, the republic is progressing well socio-economically, particularly considering that it is the world’s largest landlocked country.
Empirical evidence was gathered from the Statistics Agency of the Republic of Kazakhstan, ILO reports and CIA World Factbook. The country has been improving economically for over a decade up to the present. However, its people have low productivity while foreign investors have managed to take control of some of the oil reserves.
The author states that China’s concern on environmental problems has pushed it to pursue renewable energy; it has so far acted towards ethanol production, and progressively installed small hydropower, solar hot water, and installed wind capacity to add up what accounts from existing hydropower and nuclear energy.
5 Pages(1250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Energy politics and Security in Kazakhstan"
with a personal 20% discount.