International Good Governance and Civilized Conduct among the Caspian States: Oil and Gas as Lever for Prosperity or Conflict

摘要

The oil and gas endowment of the Caspian, whatever its contribution to tension in the first place, lends itself to the deployment of the instruments of law. It requires agreements between states on demarcation, distribution and legitimization of property rights. The method of joint petroleum development - postponing the definitive border delimitation by a joint system for collaborative licensing of disputed areas and distribution of the revenues - is particularly suitable for developing technical and legal collaboration. An oil and gas development contract also forces the country to understand the logic of technology, finance and markets, and to import the standards of the oil industry, including on safety and environmental protection. Similarly, the oil and gas agreements between investors and a host state require the need to respect contractual commitments and be seen as respecting them. In short, while oil and gas reserves can incite regional tensions, the logic of their development also has a powerful effect in teaching the virtues of law and contract. Similarly, the imperatives of oil and gas development can have a civilizing effect on neighborly relationship. The impact of disputed borders and unresolved transit, of closed markets and transportation routes, of military threats and externally fomented internal subversion usually leads to a lose-lose situation. Resolving such disputes means that the oil and gas industry can pay a peace premium. So international good governance and economic development through the petroleum industry usually go hand in hand.