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Construction launched on US-backed Caspian oil pipeline
Yahoo! ^ | Wednesday, September 18, 2002 | AFP

Posted on 09/18/2002 9:12:32 AM PDT by Willie Green

For education and discussion only. Not for commercial use.


Photo: AFP

SANGACHAL, Azerbaijan (AFP) - The inaugural section of an oil pipeline that will pump crude from the Caspian Sea to Turkey's Mediterranean coast was laid in Azerbaijan, marking the start of construction on the US-backed project.

The 2.95-billion-dollar (3.05-billion-euro) pipeline heralds a US-backed challenge to Russia's stranglehold on export routes from the oil-rich Caspian.

In a ceremony near Azerbaijan's capital, Baku, heads of state from Azerbaijan, Georgia and Turkey -- Heidar Aliyev, Eduard Shevardnadze and Ahmet Necdet Sezer -- watched as a length of steel pipe was lowered into the ground.

"The Baku-Tbilisi-Ceyhan oil pipeline will take shape from this moment on," Aliyev said at the ceremony at the Sangachal terminal which will be the starting point for the pipeline once it is completed in 2005.

US Energy Secretary Spencer Abraham also took part in the ceremony and signalled President George W. Bush's strong support for the project.

"Without this pipeline the resources of the Caspian Sea would have remained undeveloped and unavailable to world markets," he said.

"The BTC pipeline is a central component in an east-west energy corridor which will bring far-reaching benefits to the countries of this region and to the rest of the world."

The Caspian Sea holds the world's third-largest reserves of oil and gas but two of the three existing oil export pipelines go through Russian territory -- a situation Washington believes is harmful for global energy security.

The BTC pipeline will pump up to one million barrels of crude a day along the 1,750 kilometres (more than 1,000 miles) from Azerbaijan, through neighbouring Georgia to the Turkish Mediterranean port of Ceyhan.

That is roughly the same distance as from New York to Miami or from London to southern Spain.

The project was first proposed eight years ago but it has been delayed by political wrangling and arguments about its commercial viability. Until recently there were doubts that it would ever be built.

Many oil industry insiders criticised the project for being driven by political considerations instead of economic realities.

The pipeline was chosen ahead of two alternative routes for exporting Caspian oil, via Iran or Russia. Both would have been shorter and cheaper but were not politically acceptable to Washington.

Moscow has wanted nothing to do with the BTC project and officials there have repeatedly said it does not make economic sense.

Georgian officials claimed this week that Russia's dislike for the pipeline was the real reason behind threats by Moscow to launch bombing raids into northern Georgia in pursuit of Islamic rebels there.

For Azerbaijan, an impoverished former Soviet republic, the BTC pipeline means desperately needed revenues from the sale of its oil. Georgia's state budget will also benefit from transit fees.

The pipeline is being financed and built by an international consortium led by oil major BP and also comprising Azeri state oil company SOCAR, Statoil, Unocal, TPAO, Eni Agip, Total Fina Elf, Itochu and Amerada Hess.


TOPICS: Business/Economy; Foreign Affairs; Government; Russia
KEYWORDS: caspian; ceyhan; energy; energylist; oil; terrorism
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U.S. Petroleum & Crude Oil Overview
(thousand barrels per day)
1960
1965
1970
1975
1980
1985
1990
1995
2000
U.S. Crude Oil Production
7,035
7,804
9,637
8,375
8,597
8,971
7,355
6,560
5,834
U.S. Petroleum Imports
1,815
2,468
3,419
6,056
6,909
5,067
8,018
8,835
11,093
Total
8,850
10,272
13,056
14,431
15,506
14,038
15,373
15,395
16,927
Imports as % of Total
20.5
24.0
26.2
42.0
44.6
36.1
52.2
57.4
65.5

1 posted on 09/18/2002 9:12:32 AM PDT by Willie Green
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To: Willie Green
Gee, I sure hope the US can secure this very important pipeline. But you know what, US special forces happen to be in Georgia fighting terrorists! I'm sure they can help out with the pipeline while they're there.
2 posted on 09/18/2002 9:26:32 AM PDT by billybudd
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To: billybudd
Gee, I sure hope the US can secure this very important pipeline. But you know what, US special forces happen to be in Georgia fighting terrorists!

It would be my hope that our Government would finally have the common sense to encourage greater utilization of our own safe and secure energy resources rather than pursue a path that is reliant on the use of military intervention. Congress has failed miserably in its responsiblity to develop such a national energy policy. In the 30 years since the Arab Oil Embargo, our dependence on imported oil has skyrocketed from 25% to over 65%. This is unacceptable, as is the fingerpointing between the two factions of the ruling Republicrat Party.

The technology exists to dramaticly reduce our dependence on imported oil. Construction of modern, efficient mass-transportation systems in our nation's most densely populated regions and urban areas would significantly reduce consumption while promoting commerce and economic growth. Electric energy to power such systems could easily be supplied from environmentally clean nuclear technology, further reducing the consumption of fossil fuels.

3 posted on 09/18/2002 9:40:24 AM PDT by Willie Green
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To: amom
The ping you hear is the sound of a gold bar hitting an oil drum.
4 posted on 09/18/2002 9:41:21 AM PDT by KC Burke
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To: Hamiltonian
Ping.
5 posted on 09/18/2002 9:42:26 AM PDT by KC Burke
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To: Willie Green
Construction of modern, efficient mass-transportation systems in our nation's most densely populated regions and urban areas would significantly reduce consumption while promoting commerce and economic growth.

Only if you herd commuters into those systems at gunpoint.

6 posted on 09/18/2002 9:42:36 AM PDT by Poohbah
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To: Willie Green
efficient mass transit is often an oxymoron.

Many of these systems built are inefficient to the max and great public works boondoggles.

The Green eyewash sometimes blinds us to using only real practical conservation.

7 posted on 09/18/2002 9:45:40 AM PDT by KC Burke
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To: Willie Green
Electric energy to power such systems could easily be supplied from environmentally clean nuclear technology, further reducing the consumption of fossil fuels.

Agreed. Now you have to get your brother and sister Greens to agree with you. Good luck.

8 posted on 09/18/2002 9:48:08 AM PDT by m1911
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To: *Energy_List
Index Bump
9 posted on 09/18/2002 9:59:11 AM PDT by Free the USA
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To: KC Burke
efficient mass transit is often an oxymoron.

Many cities rely excessively on pollution belching buses that only hog space on the already congested roadways. Bogged down in traffic, they are far less fuel efficient and more labor/maintenance intensive than bus proponents claim. Granted, they are the cheapest way to go upfront, and they do add flexibility to the transportation infrastruction. But higher volume traffic corridors will always be served more effectively by more permanent rail systems travelling on their own, unimpeded right-of-way.

10 posted on 09/18/2002 10:00:34 AM PDT by Willie Green
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To: Balkans
ping
11 posted on 09/18/2002 10:57:53 AM PDT by DTA
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To: Willie Green
There is efficiency and common sense to look at bus lanes and HOV lanes and related improvements to produce mass transit. However, most of the light rail and similar systems have had Rider Usage fall 66 to 85% below initial forecasts and capital expense run 15 to 50% over projections thus yielding a cost per rider times the forecast that most of these things are built from.

A study by Heritage Inst. in '98 says:

While commanding 20 percent of federal surface transportation dollars, public transit today provides only 3.19 percent of the daily trips to work, down 20 percent since 1990. By 1995, more people walked or bicycled to work (2.33 percent and 0.43 percent) than went to work by bus or metro (1.76 percent and 0.9 percent). The chief reason transit's share of the federal budget exceeds its share of the market is its high cost. According to the Congressional Budget Office, commuter vans cost 12.5 cents per mile, and buses 35 cents, while light rail systems cost a staggering $3.40 per commuter mile—nearly ten times more than buses and 27 times more than vans.

Transit's minuscule share of the commuting market is not for want of trying or the result of underfunding. Since 1960, state, federal, and local governments have invested an estimated $350 billion (in 1998 dollars) in transit. Over that same period, however, American commuters have been rejecting this turn-of-the-century transportation technology at the same pace as past generations.


12 posted on 09/18/2002 11:11:04 AM PDT by KC Burke
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To: KC Burke
Over 14 million people use public transportation on a typical weekday, a 20% increase since 1995. Public transportation delivered more than 9 billion trips in 1999, representing the highest level of ridership in nearly 40 years. Most significant is that public transportation ridership rose at a faster rate than automobile use (2 percent) and domestic air travel (3 percent) in 1999.

The majority of people using public transportation take two trips per day (one to work in the morning and one home in late afternoon or evening). A small proportion--perhaps 5%--make only one public transportation trip (e.g., they ride public transportation to the airport and then fly out of town, or they ride public transportation in the morning to work, but ride home with a friend in an automobile at night). A somewhat larger proportion (primarily the public transportation-dependent) take 4, 6, 8, or even 10 trips per day.

Purpose of Public Transportation Trips by Population Group

POPULATION OF URBANIZED AREA/
URBAN PLACE

WORK

SCHOOL

SHOPPING

MEDICAL

SOCIAL

OTHER

Under 50,000

20%

9%

8%

34%

27%

2%

50,000-199,999

39%

22%

12%

6%

9%

12%

200,000-500,000

46%

19%

13%

5%

8%

9%

500,000-999,999

51%

15%

11%

5%

6%

12%

1 million and more

55%

15%

9%

5%

9%

7%

NATIONAL AVERAGE

54%

15%

9%

5%

9%

8%


13 posted on 09/18/2002 2:20:21 PM PDT by Willie Green
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To: Willie Green
Comparing a public transportation right of way to an extra traffic lane shows that it typically carries 20% of what the traffic lane would carry and costs 5 to 15 times as much. The ridership may be growing by percentage, and even in numbers, but it is still a very small percentage.

There are some land locked major cities where it is a very sensible use of public money. But the urge of the next 50 cities in size to latch onto the Federal teat of Mass Transit money is often a boondoggle for airport authorities and trade unions that local politicians want to pay off with government projects (pork) that they can bring to their local economies.

Often, short-sightedly.

14 posted on 09/18/2002 2:32:28 PM PDT by KC Burke
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To: mafree; Grampa Dave; marron; a_Turk; Turk2; Willie Green
Gee, that pipeline doesn't look like it's going thru Afghanistan. Better tell Phil Donahue.

< /sarcasm>

15 posted on 09/18/2002 2:51:58 PM PDT by Shermy
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To: KC Burke
Comparing a public transportation right of way to an extra traffic lane shows that it typically carries 20% of what the traffic lane would carry...
There are some land locked major cities where it is a very sensible use of public money. But the urge of the next 50 cities in size to...

Adding an extra lane merely funnels more traffic onto the connecting roads and streets that haven't (and likely can't) been expanded. It also increases the burden on limited parking availablity. The urban centers of most major cities are "landlocked", that's why they're "cities" -- the land has been fully developed and availability is at a premium. Mass transit is the most sensible means of moving people around in these densely populated areas. Yes, including commuting from/to the 'burbs and out to the airport.

16 posted on 09/18/2002 3:05:42 PM PDT by Willie Green
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To: Willie Green
Yes, I agree in some instance it is the most "sensible" but should it be a Planned Outcome. Should government take property (tax) to finace planners dreams, or is the invisible hand going to give us the solution that people want anyway?

Remeber: Large city governemtns, almost universally under socialist-democrat control, will be the ones making the decisions.

17 posted on 09/18/2002 3:10:06 PM PDT by KC Burke
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To: Willie Green
We are way off topic....I'll try and post a thread about this with a lot of links and ping you to it when I start it...but I don't know when I will have the time.
18 posted on 09/18/2002 3:11:09 PM PDT by KC Burke
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To: Willie Green
This project was stymied for years due in part to the Kurdish insurrection in eastern Turkey. The capture of the Kurdish commander and his subsequent help in negotiating at least a temporary end to the fighting is what made this project feasible.

It also gives the Kurds veto power over Turkey's nascent oil industry. The Turks will have to deal with the Kurds.

At the same time this project will bring industrial employment into some of the remotest areas in the world. This does not guarantee a permanent end to the fighting, but it offers a chance.

In the aftermath of the upcoming festivities in Iraq, Iraqi Kurdistan may inherit a portion of Iraq's oil wealth, since the northern oil fields are in Kurdish territory, or what was Kurdish prior to Saddam's ethnic cleansing.

If Turkey is smart, she will make herself Kurdistan's number one investor. If Turkey want's to hold on to her own Kurdish provinces, she needs to make herself the indispensable partner to Kurds on both sides of the line.
19 posted on 09/18/2002 3:39:40 PM PDT by marron
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To: Willie Green
Thanks for the good news!
20 posted on 09/18/2002 3:55:53 PM PDT by Grampa Dave
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