Oil and Gas Production from the Caspian Sea Region will Increase to 15,426 MMboe by 2020
Crude oil and natural gas production from the Caspian Sea region is estimated to increase from 12,151.7 MMboe in 2011 to 15,426.2 MMboe in 2020, reflecting an Average Annual Growth Rate (AAGR) of 2.7%. The increase in production will primarily be contributed by Kazakhstan, Turkmenistan and Azerbaijan. Russia, already a major oil and gas producer in the region, will also witness a significant increase in production during the forecast period. Huge reserves potential and new discoveries in the Caspian Sea region will support increased in oil and gas production from the region. Currently, gross crude oil and natural gas production from the Caspian Sea region has largest contribution from Russia, followed by Iran and Kazakhstan. Production from the region has increased from 8,511.7 MMboe in 2000 to 12,151.7 MMboe in 2011 at an AAGR of 3.2%.
Abundant Undiscovered Hydrocarbon Resources Makes the Caspian Sea Region Important for the Global Energy Market
The Caspian Sea region is estimated to hold around 12% of the global oil reserves, with 75 billion barrels of oil and 6.9 trillion cubic meters (tcm) of proven gas reserves. In 1991, after the collapse of the Soviet Union, the region’s hydrocarbon resources were distributed among the littoral states, with 33% of the region’s total resources were allocated to Azerbaijan, 35% to Kazakhstan, 18% to Turkmenistan and 14% to Russia. However, that time about 97.5% of the region’s proven reserves were allocated to Azerbaijan and Turkmenistan and the rest 2.5% were allocated to Russia. The Caspian Sea region has four major basins; the North Caspian Basin, Middle Caspian Basin, North Ustyurt Basin and South Caspian Basin. The South Caspian Basin is the richest basin in terms of reserves, with estimated undiscovered oil and gas reserves of 12.7 million barrels (MMbbl) and 34.6 million barrels of oil equivalent (MMboe). Azerbaijan, Turkmenistan and Iran share 45%, 35% and 20% of the basin, respectively.