The impact of Baku – Tbilisi - Ceyhan Oil Pipeline on Turkey and Azerbaijan

Energy resources, especially oil, have been a strategic factor that determines the destiny of countries from past to present. The state of having energy resources, producing or consuming energy has always been considered as key indicators of the socio- economic development levels of countries. Oil seems to retain its hard-to-reach influence on the world economy until another option is found to hold its place as an energy source. After the breakup of the Soviet Union, the Caspian Basin, with its proven oil reserves of 20 million tons, has become a remarkable region in the face of growing energy demand. However, the ongoing relations between the states of the region and the states developing policies for energy exchange with the region in the Caspian Basin have brought the struggle for sharing the energy resource in question. Azerbaijan, an important actor in the region, also has a significant portion of the oil deposits that exist in the Caspian Sea. Azerbaijan, which, like all countries in the region, want to strengthen its economy through its energy resources, has been the first country to reach joint production agreements with international oil companies. İn this study, the energy policy of Azerbaijan formed through oil transfer and trade and the impact of this policy on both Azerbaijan and Turkey's economy is evaluted. İn the context of the study, the economic and environment impacts of the Baku- Tbilisi- Ceyhan (BTC) pipeline Project, which is developed as the main export and Azerbaijan are evaluted.