Oil pipeline
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Transcript of Oil pipeline
Georgia & The Baku-Tbilisi-Ceyhan Pipeline
Vanessa [email protected]
Geography 308 (Russia and Eastern Europe)Professor Zoltan Grossman
University Wisconsin – Eau ClaireSpring 2005
Georgia• A Brief History After
leaving the Soviet Union:– Georgia Declares
Independence April 9, 1991– Georgia and Abkhaz forces
collide 1992– October 1993 the port of
Poti is taken by Abkhazian forces and Georgia reluctantly joins the CIS in return for Russia reopening supply lines.
– Fighting and tension continue in 3 regions of Georgia: 1: Abkhazia, 2: Ajaria, & 3: South Ossetia
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http://mapage.noos.fr/dcolas/interneteuropeest.html
The BTC Pipeline
• The Baku-Tbilisi-Ceyhan Pipeline began construction in May 2003
• In 2004 Georgia’s Defense Minister called the CIS “yesterday’s history” and the country’s future was with NATO
http://www.usafe.af.mil/news/news03/uns03738.htm http://georgia.usembassy.gov/events/event20041205Pace.htm
Politics
– Originally started for Pankisi Gorge
– Those soldiers were sent to Iraq instead
– They will be providing security for the BTC pipeline. US provided additional funding for
this protection.
•In 2002 the U.S. and Georgia began the Georgia Train & Equip counter-terrorism action in the Pankisi Program (GTEP)
http://www.pinr.com/images/lib/georgia.jpg
The Pipeline• Runs through Azerbaijan, Georgia, & Turkey• Could have passed through Armenia, but at war with Azerbaijan • Bypassed Iranian and Russian routes
http://www.caspiandevelopmentandexport.com/ASP/map_large.html
Politics
• Why go through Georgia?– U.S. mistrust of Russia and Iran– Russia has a current monopoly on the
Caspian oil – Azerbaijan/Armenian conflict (Nagorno-
Karabakh)
Politics• Brings Georgia to international level
– Georgia is looking for protection from Russia• NATO application 2006
http://www.zanato.com/pics/nato-flags.jpg
http://www.fas.org/man/nato/national/http://www.brahler-ics.co.uk/images/infracom-nato.jpg
19992004
The Pipeline
• Run by British Petroleum (BP)
• Will cost $2.9 Billion
• 1,090 miles long
• Expected to carry 1 million barrels of crude oil a day
Azerbaijan
UK
SOCAR (the state oil company of Azerbaijan); BP (UK); TPAO (Turkey); Statoil (Norway); Unocal (USA); Itochu (Japan); Amerada Hess (USA); Eni (Italy); TotalFinaElf (France); INPEX (Japan) and ConocoPhillips (USA).
http://www.caspiandevelopmentandexport.com/ASP/BTC.asp
Contributors
Economics
• Georgia’s state budget is less than $1 billion a year
• Transit fees from the BTC pipeline will bring in $65 million a year
• Georgia is responsible for security and any losses incurred from damage to the pipeline
Local Economics
• During construction of the pipeline about 2,000 Georgians will be employed
• Their salaries will range from $200 to $550 a month (some Georgians live on $30 a month)
• After construction only 100 permanent jobs will remain
• Former President Eduard Shevardnadze promised 60,000 jobs
http://www.azer.com/aiweb/categories/magazine/ai112_folder/112_articles/112_btc.html
Local Corruption• KHAISHI, GEORGIA
– 130 farming families– Land collectively owned– Pipeline to pass through their village and $330,000 to
be split among them– Former village headman and relatives received all of
the money
http://www.bpamoco.org.uk/environment/04-01-16csm.htm
Local Concerns
• The pipeline passes over 4 seismically active faults in Georgia alone
http://www.gridtb.org/projects/CEO/images/seismicity.jpg
Local Concerns• The Pipeline is routed through the Borjomi region
– Passes within 15 km. of Borjomi National Park– Borjomi exports mineral water
• Accounts for 10% of Georgia’s exports• Oil spill would devastate streams and rivers
http://www.rzuser.uni-heidelberg.de/~ci4/georgien/geoinfo/newapp.htm
http://www.bpamoco.org.uk/environment/04-01-16csm.htm
http://www.pitt.edu/AFShome/s/l/slavic/public/html/courses/russ1771/labels/water/borj.jpg
Local Conflicts
• The pipeline is also bypassing a region of Georgia known as Akhalkalaki – Location of Russian military base
• This is the largest employer of the local population
http://www.agbu.org/agbunews/display.asp?A_ID=157
Akhalkalaki • Large Armenian
minority population– Route opposed by
Azerbaijan’s government• Fear of protests or
sabotage
The Pipeline: Good or Bad?• Currently the pipeline is 93% complete
• It is expected to become operational in June of 2005
http://www.peacecorpsonline.org/messages/messages/467/2013527.html
Sources• Eurasian Net: http://www.eurasianet.org/departments/insight/articles/eav31505.shtml
» http://www.eurasianet.org/eurasianet/departments/insight/articles/eav022001.shtml
• BTC Section http://www.azer.com/aiweb/categories/magazine/ai112_folder/112_articles/112_btc.html• Baku Ceyhan Campaign http://www.baku.org.uk/• PBS http://www.pbs.org/wnet/extremeoil/journey/georgia3.html• One World Net http://www.oneworld.net/external/?url=http%3A%2F%2F
» http://africa.oneworld.net/article/archive/7161
• PanArmenian Net http://panarmenian.net/details/eng/?id=498&date=2005-03-10• Georgia Precarious Pipeline http://forests.org/articles/reader.asp?linkid=23309• Turkish Press http://www.turkishpress.com/news.asp?ID=36638
» http://www.turkishpress.com/news.asp?ID=39492» www.turkishpress.com%2Fnews.asp%3Fid%3D30475
• Alexander’s Gas & Oil http://www.gasandoil.com/goc/company/cnc30619.htm• Bank Information Center http://www.bicusa.org/bicusa/issues/misc_resources/447.php• BP without the PR http://www.bpamoco.org.uk/environment/04-01-16csm.htm• Caspian BTChttp://www.caspiandevelopmentandexport.com/ASP/BTC.asp• Civil Georgia http://www.civil.ge/eng/article.php?id=8094• JINSA Online
http://www.jinsa.org/articles/articles.html/function/view/categoryid/171/documentid/2809/history/3,2360,656,171,2809• United Press International http://www.upi.com/view.cfm?StoryID=20021015-054107-4457r• Georgia wants Russian Bases shut down http://feeds.bignewsnetwork.com/?sid=97923cfab1941a34• Caspian Energy http://www.caspenergy.com/17/wood_e.html• Nagorno Conflict http://www.coe.int/T/E/Com/Files/Events/2003-04-Youth-conflicts/Nagorno_conflict.asp• Hydrocarbons Technology http://www.hydrocarbons-technology.com/projects/bp/index.html#bp4