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DOES AZERBAIJAN'S 'BLACK CITY' HAVE A GOLDEN FUTURE?
By Jim Boulden
CNN.com
November 14, 2011 Monday 11:23 PM EST
What I first noticed when arriving in Baku, beyond the world's tallest
free-standing flag pole, was the oil derricks in the Caspian Sea,
visible from western hotels steadily rising along the coast.
Where other cities might dress the skyline to lure visitors to the
beach, or to take a boat cruise, Azerbaijan is all about its energy
wealth.
The country of eight million people benefits from having started early
in the oil game -- in 1846 the country drilled the first oil well in
the world -- but all that is well known, as is the country's push to
extract more oil off shore in the Caspian.
Country profile: Azerbaijan
What should become more well-known is the country's attempt to
diversify away from oil and focus more on natural gas. To the ever
expanding gratitude of Western Europe, Azerbaijan is close to tripling
the amount of natural gas processed through its BP facility south
of Baku.
Soon the owners of the Shah Deniz natural gas lease in the Caspian
will choose from a host of competing pipeline consortiums to bring
more natural gas to Western Europe. Most importantly, it means more gas
heating rooms in Romania and Germany that does not come from Russia.
As one of the most potent symbols to me of the rising energy wealth,
seaside luxury homes are being built directly across the street from
the vast BP oil and gas refinery south of Baku.
>From the front bedroom the new owners will overlook ever more
derricks. From the back yard, it is the refinery. Still, I saw more
than a dozen of these little palaces under construction.
So, what else can Azerbaijan do to move away from oil?
Information technology is one of the bigger pushes. If you look at
a map of the country, you can see why IT, software and social media
companies are reputably looking to set up regional hubs there.
Firstly, students are learning English, which is the international
language of technology. Secondly, many still speak Russian. The legacy
of the former Soviet Union means workers can not only communicate
easily with neighboring Russia, but also with potential customers in
Kazakhstan and Uzbekistan -- two fast growing countries in the region.
Add to that two obvious connections: language with Turkey and ethnicity
with Iran. If you are setting up a regional company, Baku would be
one of the first places you would have to study.
Azerbaijan's economy does of course suffer from some of the leftovers
of the Communist era. The roads outside Baku are terrible. There
are also simmering tensions with neighbor Armenia (not seen on maps
whenever I looked at one around the city) and the region is not stable
when you add in Georgia, Southern Russia and Chechnya.
Azerbaijan is also using its money to reinvigorate the fishing
industry, once it has cleaned up the Caspian. It is also building a
vast complex, the size of Monaco, of new housing, shops and hotels near
the port called White City. It's a tip of the hat to what Baku used
to be known as when it produced half the world's oil -- the Black City.
One day, Baku might even become a tourist attraction. Thousands of
people will be flocking here next year when the country's hosts the
European Song Contest finals.
Test your knowledge of Azerbaijan
These fans will see a brand new convention center, a new museum in the
shape of a rolled up carpet to capture the country's love of making
carpets and exporting them around the world, a massive new embankment
ringing the Caspian giving people a chance to walk nearly the length
of the city, and explore the amazing Old City -- one of the finest
in the world and mostly unknown outside the Caucasus.
Then, if, and it's a big if, the International Olympic Committee
chooses Baku over Istanbul, Doha, Madrid and Tokyo to host the 2020
Summer Games, the world will awake to the rise of Azerbaijan.
Baku must be seen as a long shot, but it was put to me by several
people, that like the Games themselves, it is more important to take
part in the process than to necessarily win. Baku wants to be seen
on a world stage and is learning what steps to take for its growing
economy and wealth to be noticed far and wide.
By Jim Boulden
CNN.com
November 14, 2011 Monday 11:23 PM EST
What I first noticed when arriving in Baku, beyond the world's tallest
free-standing flag pole, was the oil derricks in the Caspian Sea,
visible from western hotels steadily rising along the coast.
Where other cities might dress the skyline to lure visitors to the
beach, or to take a boat cruise, Azerbaijan is all about its energy
wealth.
The country of eight million people benefits from having started early
in the oil game -- in 1846 the country drilled the first oil well in
the world -- but all that is well known, as is the country's push to
extract more oil off shore in the Caspian.
Country profile: Azerbaijan
What should become more well-known is the country's attempt to
diversify away from oil and focus more on natural gas. To the ever
expanding gratitude of Western Europe, Azerbaijan is close to tripling
the amount of natural gas processed through its BP facility south
of Baku.
Soon the owners of the Shah Deniz natural gas lease in the Caspian
will choose from a host of competing pipeline consortiums to bring
more natural gas to Western Europe. Most importantly, it means more gas
heating rooms in Romania and Germany that does not come from Russia.
As one of the most potent symbols to me of the rising energy wealth,
seaside luxury homes are being built directly across the street from
the vast BP oil and gas refinery south of Baku.
>From the front bedroom the new owners will overlook ever more
derricks. From the back yard, it is the refinery. Still, I saw more
than a dozen of these little palaces under construction.
So, what else can Azerbaijan do to move away from oil?
Information technology is one of the bigger pushes. If you look at
a map of the country, you can see why IT, software and social media
companies are reputably looking to set up regional hubs there.
Firstly, students are learning English, which is the international
language of technology. Secondly, many still speak Russian. The legacy
of the former Soviet Union means workers can not only communicate
easily with neighboring Russia, but also with potential customers in
Kazakhstan and Uzbekistan -- two fast growing countries in the region.
Add to that two obvious connections: language with Turkey and ethnicity
with Iran. If you are setting up a regional company, Baku would be
one of the first places you would have to study.
Azerbaijan's economy does of course suffer from some of the leftovers
of the Communist era. The roads outside Baku are terrible. There
are also simmering tensions with neighbor Armenia (not seen on maps
whenever I looked at one around the city) and the region is not stable
when you add in Georgia, Southern Russia and Chechnya.
Azerbaijan is also using its money to reinvigorate the fishing
industry, once it has cleaned up the Caspian. It is also building a
vast complex, the size of Monaco, of new housing, shops and hotels near
the port called White City. It's a tip of the hat to what Baku used
to be known as when it produced half the world's oil -- the Black City.
One day, Baku might even become a tourist attraction. Thousands of
people will be flocking here next year when the country's hosts the
European Song Contest finals.
Test your knowledge of Azerbaijan
These fans will see a brand new convention center, a new museum in the
shape of a rolled up carpet to capture the country's love of making
carpets and exporting them around the world, a massive new embankment
ringing the Caspian giving people a chance to walk nearly the length
of the city, and explore the amazing Old City -- one of the finest
in the world and mostly unknown outside the Caucasus.
Then, if, and it's a big if, the International Olympic Committee
chooses Baku over Istanbul, Doha, Madrid and Tokyo to host the 2020
Summer Games, the world will awake to the rise of Azerbaijan.
Baku must be seen as a long shot, but it was put to me by several
people, that like the Games themselves, it is more important to take
part in the process than to necessarily win. Baku wants to be seen
on a world stage and is learning what steps to take for its growing
economy and wealth to be noticed far and wide.