Should The Shia-Ceyhan Pipeline Have A War With Business And Politics

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“SUMMARY OF THE BAKU- CEYHAN PIPELINE MIXING OIL AND WATER WITH BUSINESS AND POLITICS” The case “Baku- Ceyhan Pipeline” was written by Van V.Miller, Milo C.Pierce and Robert J.Hoover. It deals with how Oil company executives planned for contingencies for setting of the “Baku- Ceyhan Pipeline” under various circumstances in highly volatile industry and region where a war with Iraq had just commenced. The challenge they faced was how to transport vast quantities of crude oil from Caspian Sea region to major markets for refining and selling there. The attack of September 11 and Hussein’s apparent downfall in Iraq made matters more complex. The business decisions regarding “Baku-Ceyhan Pipeline” are influenced by geography and by mountain ranges …show more content…

First, for transportation across Asia Pacific and Europe where there is high market demand for oil. The pipeline thus represents the tactical part of business solution for effective use of Caspian Sea Oil. Second, the predictions and forecasts about the demands and supply of oil and its pricing are not accurate enough and might cause wrong decisions and conclusions and so without Caspian Sea Oil supply, the companies cannot have sufficient supply for market. Third, is the political issue with the US since the disintegration of Soviet Union in 1991.The United States wanted to influence events and leaders in the region and even the Russians and the Iranians wished for the …show more content…

It is even lengthy covering 1075 miles, also the route is quite mountainous and earthquake prone which makes the construction even more expensive. This route is opted in spite of its huge costs and length due to rivalry among nations and political issues involving in BP and US. The “Baku-Ceyhan Pipeline” has a capacity of 1 million barrels per day. After detailed engineering study by Azerbaijan International Operating Corporation (AIOC) led by BP by 2002, the construction began there after by

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