European Energy Security: Wrestling the Russian Bear for Caspian Natural Gas

Natural gas, and its accessibility, is a growing component of national security. In its March 2006 Green Paper on Energy Security, the European Commission committed itself to promoting energy source diversification. Nevertheless, 25 percent of the European Union's natural gas comes from Russia, a figure that is estimated to grow to over 50 percent by 2030 as European Union domestic production continues to decline. Unfortunately for European energy security, Russia has shown itself increasingly willing to flex its energy muscle by strong-arming both buyers and sellers on pricing and interrupting deliveries to send political messages. This paper examines the European Union's growing dependency on natural gas and Russia's reliability as a natural gas supplier in view of European Union strategic energy security needs. The study then examines the Caspian region as a diversifying source for European Union natural gas needs. Finally, based on the findings, policy suggestions are presented to improve the European Union's energy security framework.