Energy Supply and Demand in Eurasia: Cooperation between EU and Iran

Abstract

Energy diversification has emerged as one of the most important priorities for a majority of the European countries and the EU. Growing energy demand in Europe combined with a high reliance on Russia as an energy producer have led the EU to look to the Caspian Sea region for alternative energy resources, especially in natural gas. Iran has the 2nd largest natural gas reserves in the world and could assist Europe in diversifying supplies. This article argues that there is substantial potential for energy cooperation between Iran and the European countries, particularly Turkey. Increased Iranian participation in the Eurasian energy market, both as consumer and producer, could lead to other benefits including economic development and more efficient energy extraction.