Development of Cross Siberia Kazakh-Russian Oil Pipeline Concept

In 2001, Bob was involved in international business with a Scottish partner who had a marvelous and, like Bob’s, multi-faceted background. Allowing for Bob’s interest in politics and international affairs, his strong affinity for the former Soviet Union, a relationship to a well connected native of the newly independent Kazakhstan, and Japanese oil requirements, Bob began a process of analyses that resulted in an informal proposal for an oil pipeline from Kazakhstan across Siberia to the Sea of Japan.

This proposal was timely, allowing for large Kazakh oil reserves, but also took into account the probable need to placate the Russian government across whose Siberia the pipeline had to flow. Therefore, Bob determined to suggest to the Russians the possibility of having their own oil capabilities feed the same line. A formula would then have been devised to determine the resultant revenues from the overall flow of Russian and Kazakh crude to Japan.

The goal of this project was to supply Japan with most or all of its large crude oil requirement by pipeline directly from source, thus lessening or totally eliminating that country’s need to send oil tankers around the world for same.

An interesting added benefit to this plan in the light of today's events is that this might have lessened or totally eliminated Japanese requirements for Iranian crude.

The project failed to materialize for two reasons: first, due to difficulties obtaining the required financing from a Japanese entity that Bob’s Scottish partner felt would qualify, unless also believed would be interested in the project, and secondly, owing to a report that the Kazakh President, Nursultan Nazerbaev, felt the resultant revenues would be too great to be absorbed by the Kazakh economy.

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