The Silk Road Stategy

I saw where someone posted this. As far as I know this has been little talked about in the media.

Congress originally passed legislation on this in 1998/9 and then updated it in 2006.


From the 1998 hearings on it->

STATEMENT OF ROBERT W. GEE, ASSISTANT SECRETARY FOR POLICY AND INTERNATIONAL AFFAIRS, DEPARTMENT OF ENERGY
Mr. GEE:

"I also appreciate the opportunity to appear before you as you begin consideration of H.R. 2867, the House version of the Silk Road Strategy Act. While the Administration does not yet have a formal position on the bill, the underlying theme of the proposed legislation is consistent with our policy objectives and strategic goals in the region.

To begin, you may ask why is the United States active in the region? The United States has energy security, strategic, and commercial interests in promoting Caspian region energy development. We have an interest in strengthening global energy security through diversification, and the development of these new sources of supply. Caspian export routes would diversify rather than concentrate world energy supplies, while avoiding over-reliance on the Persian Gulf.

We have strategic interests in supporting the independence, sovereignty, and prosperity of the Newly Independent States of the Caspian Basin. We want to assist the development of these States into democratic, sovereign members of the world community of nations, enjoying unfettered access to world markets without pressure or undue influence from regional powers.

We also have an interest in maximizing commercial opportunities for U.S. firms and for U.S. and other foreign investment in the region's energy development. In short, our interests are rooted in achieving multiple objectives. Rapid development of the region's energy resources and trade linkages are critical to the independence, prosperity, democracy, and stability of all of the countries of that region.

Four factors frame our policy. First, promoting multiple export routes. The Administration's policy is centered on rapid development of the region's resources and the transportation and sale of those resources to hard-currency markets to secure the independence of these new countries. Accordingly, our government has promoted the development of multiple pipelines and diversified infrastructure networks to open and integrate these countries into the global market and to foster regional cooperation...

Our support of specific pipelines, such as the Baku-Ceyhan oil pipeline and trans-Caspian oil and gas lines, is not driven by any desire to intervene in private commercial decisions. Rather, it derives from our conclusion that it is not in the commercial interest of companies operating in the Caspian States, nor in the strategic interests of those host States, to rely on a major competitor for transit rights...

The United States supports regional approaches to Caspian energy development. The Eurasian corridor will enhance Turkey's energy security through diversification, and will ensure that Kazakhstan, Uzbekistan, Turkmenistan and Azerbaijan have reliable and diversified outlets for their resources...

Our policy on Iran is unchanged. The U.S. Government opposes pipelines through Iran. Development of Iran's oil and gas industry and pipelines from the Caspian Basin south through Iran will seriously undercut the development of east-west infrastructure, and give Iran improper leverage over the economies of the Caucasus and Central Asian States. Moreover, from an energy security standpoint, it makes no sense to move yet more energy resources through the Persian Gulf, a potential major hot spot or chokepoint. From an economic standpoint, Iran competes with Turkmenistan for the lucrative Turkish gas market. Turkmenistan could provide the gas to build the pipeline, only to see itself displaced ultimately by Iran's own gas exports....

The U.S. Government's position is that we support multiple pipelines with the exception of the southern pipeline that would transit Iran. The Unocal pipeline is among those pipelines that would receive our support under that policy.
I would caution that while we do support the project, the U.S. Government has not at this point recognized any governing regime of the transit country, one of the transit countries, Afghanistan, through which that pipeline would be routed. But we do support the project....