1. Uzbekistan is well-positioned to play a much bigger role in connecting East and West.
Due to its geographical location, Uzbekistan is connected to several important economic centers on the Eurasian landmass. They include the East Asian economies to the east, the Eurasian Economic Union and Russia in the north, the European economy to the west. Uzbekistan, if it had better access, could trade with Pakistan through a corridor connecting it with other Central Asian nations. This would give Uzbekistan access to the Indian Ocean. The Russian Federation continues to play a central role in regional energy policy.
2. Uzbekistan could supply China with more energy
Its central location makes Uzbekistan an important transit country for hydrocarbon resources. The presence of significant hydrocarbon reserves, oil, gas, and coal within Central Asia plays a key role in shaping the region’s relationship with China. Uzbekistan is located right in the middle, connecting these energy flows between the center of the Eurasian continent and East Asia.
China has emerged as the number one energy consumer in the region. As domestic oil and gas reserves dwindle, China is looking for other sources. Central Asia is seen as a major supplier of hydrocarbons.
3. Uzbekistan is a major player in Central Asia and has close energy ties with Russia
Relations with the Russian Federation have long played a central role in Uzbekistan’s geopolitics. Uzbekistan’s energy sector is closely intertwined with the energy sectors of Kazakhstan and Russia.
Uzbekistan could become the hub connecting different countries. That is, Uzbekistan can connect natural gas producers and consumers. This makes sense considering that Uzbekistan itself is a major producer of natural gas.
Uzbekistan could make greater use of its own natural gas reserves. The country could make greater use of its own petroleum reserves. The reserves are important for the production of value-added products, especially chemical products. Diversification expands the scope of economic activity.
Uzbekistan could expand regional trade. The nation could expand trade with countries in the south.
Deffeyes, K S 2006, Beyond Oil: The view from Hubbert’s Peak, Hill and Wang, ISBN 0-8090-2957-X, United States.