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This report analyzes oil and natural gas in the Caspian region, focusing primarily on the littoral (coastal) countries of the Caspian Sea (Russia, Azerbaijan, Kazakhstan, Turkmenistan and Iran). A discussion of Uzbekistan is also included. While not a Caspian coastal state, a considerable amount of Uzbekistan's territory, along with its energy resources, lies in the geological Caspian basins.

The combination of foreign investment and rising energy prices allowed the coastal countries to shift from diverting oil extraction for local use to supplying both regional and world oil markets. The ability of countries to export greater volumes of Caspian crude oil and natural gas will depend on how quickly domestic energy demand rises in those countries, how quickly they can build additional export infrastructure to global markets, and whether expensive projects to develop Caspian resources can attract sufficient investment.