Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikstan, Turkmenistan, and Uzebekistan statistically have 18 to 35 billion oil barrels in proven reserves and the possible reserves of 235 billion barrels and 236 to 337 trillion cubic feet of natural gas. The Caspian Sea is appealing and the U.S is eager to reduce dependency on Persian Gulf oil. Under Secretary Zienstat told the U.S Senate Subcommittee, "the Caspian Sea is potentially one of the worlds most important new energy producing regions".

In 1997, oil production was 1.1 million barrels per day (mbd), by 2010 oil production is expected to 4.4 mbd, and by 2020 hitting 6 mbd. Companies flocking to gain development rights in the Caspian Sea include: Amoco, Chevron, Exxon, Mobile, and British Petroleum. Chevron invested $20 billion in a joint venture with the Kazakh government to develop the Tengiz oil field resulting in a firm known as Tengizchevroil and was later joined by Mobil who made a 25 percent purchase share in the consortium. Caspian Pipeline Consortium (CPC) combined Tengizchevroil partners and Lukeoil of Russia to build a 900 mile oil pipeline costing $2.2 billion spanning from Tengiz to Novorossiysk. Russia would like the oil to pass through their region to capture some of the immense wealth being generated from the Caspian sea oil transports. The second pipeline spans from Baku in Azerbaijan to Supsa and was opened in 1999.

U.S - Russia tensions will be the result of power struggles. Russia's interest is to make sure a significant portion of Caspian Energy flows through Russian pipelines to the Black Sea and Europe. Russia has put pressure on Azerbaijan and Kazakhstan to send a significant share of oil through southern Russia to Novorossiysk. Tension in Chechnya and Dagestan from Muslim extremist revolts will destabilize oil through Russian regions.

Washington wants to develop the Caspian Basin energy as an alternate to the Persian Gulf and ensure Caspian oil and gas travel to markets in the west without passing through Russia and Iran. A new pipeline extending from Kazakhan and Turkmenstan to Azerbaijan under the Caspian Sea then to Georgia would meet these objectives. Another pipeline from Azerbaijan to Bushehr in the Persian Gulf is blocked by an executive order issued by President Clinton not allowing over $40 million U.S businesses ventures with Iran.

The U.S lacks a military presence in the region and a high intensity conflict is unlikely. However, the U.S aid between 1998-2000 for Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikstan, Turkmenistan, and Uzbekistan reached $1.06 billion of which $175 million for reigional security, arms transfers, and military training.