Midland Energy Resources, Cost of Capital

Midland Energy Resources, Cost of Capital The case is about how Janet Mortensen, senior vice president of project finance for Midland Energy Resources, prepare her annual cost of capital estimates for midland and each of its three divisions for her company. Midland was a global energy company with operations in oil and gas exploration and production (E&P), refining and marketing(R&M), and petrochemicals. Estimates of cost of capital prepared by Mortensen were used in many analyses within Midland, including asset appraisals for both capital budgeting and financial accounting, performance assessments.Since her calculations had been widely applied in various areas and became influential, she was considering appending a sort of user’s guide to the 2007 set of calculations for reference to different applications. Mortensen used WACC formula to estimate cost of capital, compute the cost of debt by adding a premium over US Treasury securities of a similar maturity, and calculate the cost of equity by using the CAPM formula. After reviewing the case and tables given, we calculated the company’s composite WACC and WACCs for each division respectively. The company’s composite WACC is 8. 19%. The inputs we used are spread to treasury of 1. 2%, debt ratio of 42. 2%, Treasury bond yields of 4. 98% at a 30-year maturity, the 2006 tax rate of 39%, beta of 1. 25, and EMRP of 5%. However, we do not think that EMRP given in the case is appropriate. Instead, we recommend 3. 3%, which is the most recent EMRP estimate according the survey results in the Exhibit 6. Midland cannot use the same WACC for all divisions. It has three different divisions with different risk or Beta, which is given in Exhibit 5. If midland uses same WACC for all division it can accept risky investment or some time it may mislead by giving up profitable investment.It should use corporate WACC only for corporate level decision. WACC for E&P and R&M is calculated by using cost of debt by adding risk free rate plus spread to TB. From the Exhibit 5, weights for debt and Equity are calculated. WACC of E&P is 8. 82 and R&F is 9. 83. Both WACC are different to each other because they have different risk level, leverage and credit rating. Calculation Part: WACC (E&P):=rd(D/V)(1-t)+re(E/V)=6. 58*0. 2847(1-0. 39)+10. 73*0. 7153=8. 8178 rd=rf+spread =4. 98+1. 6=6. 58, re=rf+B(EMRP)=4. 98+1. 15*5=10. 73 D/E=0. 398 or V-E/E=0. 398 or E/V=0. 7153D/V=1-E/V=1-0. 7153=0. 2847 WACC (R&M)=rd(D/V)(1-t)+re(E/V)=6. 78*0. 1687(1-0. 39)+10. 98*0. 8313=9. 8253 rd= rf+spread =4. 98+1. 8=6. 78re= rf+B(EMRP)=4. 98+1. 2*5=10. 98 D/E=0. 203orV-E/E=0. 203orE/V=0. 8313, D/V=1-E/V=1-0. 8313=0. 1687 For Petrochemical division, since we don’t have sufficient information of that division. We cannot compute our Beta so that we cannot get an exact number of WACC for the division. If the managers want to have a rough estimate, they can use the overall Beta as an average for three divisions and c alculate the Beta for Petrochemical division. Then they can get the WACC.

Ethical Decision Making Paper

In this paper I will examine the relationship of a school psychologist and the relationship of his client and how boundaries were crossed when the school psychologist entered a sexual relationship with his minor client. To complete this assignment, the ethical dilemma will be discussed, the 14 steps in the ethical decision making process will be applied, further I will briefly discuss the importance of ethical decision making in professional psychology. Ethical Dilemma. A psychologist working in the Baltimore City Public School System with middle school students in the Promoting Respect Integrity Discipline Education (PRIDE) Program starts to develop sexual feelings toward one of the young male student’s. At first the psychologist could resist his temptations for wanting to engage in sexual activities with the young man, but the more time he spent with the student the stronger his desires became. The psychologist finds ways to meet with the student alone and he builds a trusting relationship with him and his mother. He accomplishes this by offering to be a mentor/big brother to the student because the mother is a single parent. The mother was appreciative that the psychologist was spending time with her son, by helping him with his homework, taking him to the movies, and helping to purchase school supplies. The psychologist convinced the mother to allow him to give the boy a cell phone claiming that the boy and his mother could stay in contact because the mother worked overtime, and the child would be home alone. The mother agreed to this, not thinking there was anything to the relationship. The psychologist continues to buy his client gifts and take him out to dinner and to the movies. The school psychologist finds that the boy loves dogs and asks the boy if he wanted a job after-school and on the weekends walking his dogs, he convinced the boy by taking the job they could spend more time together. The boy tells his mother about the job and the mother agrees to this and finally the psychologist asks the mother if he could take the boy on a weekend camping trip, which the mother agrees. It was on the camping trip the psychologist expresses his feelings toward the boy and the boy shares his feelings toward the psychologist and he and the boy engage in sexual relations. The sexual relationship continues the rest of the school year and throughout the summer. When the new school year begins the psychologist is still engaging in sexual relations with the student, begins to develop feelings for another student and starts spending less time with the first young man, as a result of this the boy starts acting out in class, not doing his homework, failing his test, fighting with the other students, and he becomes aggressive toward the psychologist. As a result of the boy’s acting out behaviors a parent conference is scheduled, the boy reveals that he and the psychologist have been engaging in sexual relations for the past seven to eight months. A formal investigation is conducted and it comes out that the psychologist has been spending time with the young man outside of the school, the young man spent several nights at the psychologist home, the boy told how the psychologist took him to Delaware for a weekend trip when the mother thought the boy was staying the weekend with his grandmother. The psychologist even allowed the young man to drive his car on several occasions. When the psychologist was confronted with these allegations, he broke down and confessed that he and the young man were in love and that the sex was consensual. The psychologist was arrested, fired from his job, lost his license, his apartment, and he has to register as a child sex offender. When the information was released by the media several other young boy’s came forth from different schools stating that he had a sexual relationships with the psychologist as well. The young man and his mother had to relocate to another state, he and his mother are in family counseling with a female psychologist who works with youth who have been molested. Steps in Ethical Decision Making According to Pope and Vasquez (2007), there are 18 steps used in the ethical decision making process, and these steps serve as a guide for every professional psychologist. The steps are available to help the psychologist know when he or she must think through and know how to respond appropriately to an ethical dilemma, how to take responsibility for his or her actions to the response that he or she has made. These steps will also assist the psychologist in coming up with a way to see specific aspects of the situation, he or she will be able to consider both the negative and the positive consequences in which an individual could respond, and finally the steps will help the psychologist to develop different approaches to meet the needs of the client. The first 14 steps will be considered in this section as it relates to the role of the psychologist and what boundary issues are. 1) Identify the situation that requires ethical consideration and decision making. The psychologist has developed sexual feelings toward a young male client at the school in which he works. 2) Anticipate who will be affected by your decision. The parties that will be affected is the child, the mother, the psychologist, and any other students which he has had sexual relations with. 3) Figure out whom, if anyone is the client. The young boy is the client, as well as the other boy’s he molested. 4) Assess your relevant areas of competence, and of missing knowledge, skills, experience, or expertise in regards to the relevant aspects of this situation. The psychologist has engaged in this type of behavior before. When he started having these feelings for the client he should have referred the client to the social worker and worked with his other clients. 5) Review relevant formal ethical standards. The psychologist failed to abide by the code of ethics and the ethic codes are very clear about psychologist/client sexual relationships. The ethical standards are helpful in understanding the boundary issues in this particular situation. 6) Review relevant legal standards. In this situation the law states that an adult cannot take a minor across state lines without parental consent. It is illegal for an adult to have sex with a minor. 7) Review the relevant research and theory. The laws are very clear about sex with minors, and transporting minors across state lines. 8) Consider how, if at all, your personal feelings, biases, or self-interest might affect your ethical judgment and reasoning. In this situation the psychologist was moved by his feelings and lost sight of what he was suppose to be doing and that was helping his client deal with his issues as an emotional disturbed individual. His decision to engage in sexual relations with a minor will be frowned upon by his colleagues, society, and the school system. 9) Consider what effects, if any, that social, cultural, religious, or similar factors may have on the situation and on identifying ethical responses. The social, cultural, and religious sectors here disapprove of sexual relations with members of the same sex, and the law clearly states that sex with a minor is illegal, and it is not considered consensual when the child is under 18 years of age. 10) Consider consultation. The psychologist should have been in therapy himself because he needs someone that he can trust to help him resist the urge to have sex with a minor. 11) Develop alternative courses of action. The psychologist should have sought out an individual that he could confide in about his desire to have sex with young boys. He should have also removed himself from working with young boys if he knew that this was a weakness for him. 12) Evaluate the alternative courses of action. The worst possible impact that this situation has is the psychology will lose everything and go to jail. He also has caused harm to the young man which he was trusted to care for. The psychologist violated the trust of the mother, and corrupted the mind of the young man. 13) Try to adopt the perspective of each person who will be affected. The young man who was involved believed that the psychologist loved him; the mother believed that the psychologist really wanted to help her son, and the psychologist was just looking to satisfy his sexual urges of having sex with young men. 14) Decide what to do and then review or reconsider it. In this situation the right thing to do is not engage in sexual relations with a minor. Remove yourself from the equation and avoid working with young men if you know this is a weakness for you. The Importance of Ethical Decision Making In professional psychology ethical decision making is important because it helps to steer the psychologist in the right direction, helping him or her to avoid major pitfalls and getting into dilemma’s that there is no good outcome. Every psychologist must understand that there are lives at stakes and each decision that he or she makes will have a negative or positive effect not only on him or her, and the client but also on all parties closely related to the client. Conclusion In conclusion the relationship between the school psychologist and the young male client who he had sexual relations with was analyzed. The psychologist violated the ethical codes and standards by engaging and acting on his sexual feelings toward a minor client. He further violated the trust of the young man and his mother who believed that the psychologist was helping the young man, but rather he created more harm than good. The steps in the ethical decision making process were applied and the importance of ethical decision making was discussed.

Animal Research

Animal Research Essay Animal ResearchFor the past 20 years, there has a been an on going heateddebate on whether experiments on animals for the benefit of medical and scientific research is ethical. Whether it is or isnt, most people believe that some form of cost-benefit test should be performedto determine if the action is right. The costs include: animal pain, distress and death where thebenefits include the collection of new knowledge or the development of new medical therapies forhumans. Looking into these different aspects of the experimentation, there is a large gap for argumentbetween the different scientists views. In the next few paragraphs, both sides of the argument will beexpressed by the supporters. A well known scientist named Neal D. Barnard said, The use ofanimals for research and testing is only one of many investigative techniques available. We believethat although animal experiments are sometimes intellectually seductive, they are poorly suited toaddressing the urgent health problems of our era, such as heart disease, cancer, stroke, AIDS andbirth defects. He goes on further to say that animal experiments can not only mislead researchersbut even contribute to illnesses or deaths by failing to predict any toxic effect on drugs. The majorityof animals in laboratories are used for genetic manipulation, surgical intervention or injection offoreign substances. Researchers produce solutions from these animal models and are adaptingthem to human conditions. Unfortunately, these animal models cant always be connected with thehuman body thus creating problems. Many times, researchers induce strokes on animals in order totest certain methods for curing. The downfall of this procedure is that a healthy animal thatexperiences a sudden stroke does not undergo the slowly progressive arterial damage that usuallyplays a crucial role in human strokes. In another illustration of the inaccuracy of animal research,scientists in the 1960s deduced from many animal experiments that inhaled tobacco smoke did notcause lung cancer. For many years afterward, the tobacco industry was able to use these studies todelay government warnings and to discourage physician s from intervening in their patients smokinghabits. We all know now that this is totally untrue and that smoking is a large contributor to cancer. Itturns out that cancer research is especially sensitive to differences in physiology between humans andother animals. Many animals, particularly rats and mice, synthesize within their bodies approximately100 times the recommended daily allowance for humans of vitamin C, which is believed to help thebody ward off cancer. The stress of handling, confinement and isolation alters the animals mentalstability and introduces yet another experimental variable that makes any results from testing evenless valuable to human helping. In many cases, drugs and other substances are given to the testanimals but studies have shown considerable differences in the effects of these drugs on differentspecies. David Salsburg of Pfizer Central Research has noted that of 19 chemicals known to causecancer in humans when ingested, only seven caused cancer in mice and rats using the standards setby the National Cancer Institute. This justifies that many substances that appeared safe in animalstudies and received approval from the U.S. Food and Drug Administration for use in humans laterproved dangerous to people. The drug milrinone, which raises cardiac output, increased survival ofrats with artificially induced heart failure; humans with severe chronic heart failure taking this drug hada 30 percent increase in fatalities. Also, the antiviral drug fialuridine seemed safe in animal trials yetcaused liver failure in seven of 15 humans taking the drug (five of these patients died as a result of themedication, and the other two received liver transplants). Scientists and the populous that do notagree with the experimentation of animals believe in different methods. These techniques includeepidemiological studies, clinical intervention trials, astute clinical observation aided by laboratorytesting, human tissue and cell cultures, autopsy studies, endoscopic examination and biopsy, as wellas new imaging methods. In the last decade, scientists with these views have learned to respect theanimals for their own species observations and for their ability to communicate. On the reverseaspect, many scientists READ: Computer systems Essay

No child left behind act Essay Example | Topics and Well Written Essays - 750 words

No child left behind act - Essay Example The report states the alarming statistics of how competing15 year old international students were better at math then the Americans’ by of scoring lower than peers among pupils from other industrialized countries. Despite the staggering numbers, and the drop rates of 7000 school children on daily basis, the NCLB refuses to step back. It held public hearings cross the country, these talks taking the commission from Atlanta, Connecticut, Wisconsin, California, Hartford, to Madison, Georgia, Massachusetts and even Cambridge. 46 individuals from state policy makers to teachers, parents, officials and even advocates testified on behalf of thousands of people, reflecting on how the law has affected numerous lives. As Nathaniel Branden says, â€Å"The first step toward change is awareness. The second step is acceptance†. As if this isn’t enough evidence for the constantly functioning system, the collection of more than 10000 comments via its website reflects how citizen s are enthusiastic and aware of the reform being taken. Darling Hammond’s essay published in 2007 states the rather bitter sweet side of the NCLB reform, backing her arguments by yet another set of alarming statistics about the American education over the years. ... ccording to Darling Hammond, the â€Å"kill drill† system of MCQS as testing strategy has discouraged students from carrying out research analysis and experimental work which is a better measure of their knowledge and skill. NCLBs initiative according to both the essays, to label or point out more and more schools as â€Å"failing† from Darling Hammond’s view is harmful and unfair. She quotes in her essay the words of principal from Florida who points out that the already sidelined â€Å"failing† schools have little or no hope in getting help from the NCLB. NCLB has in its paradigm the system of accounting the student and the teachers for their performance, however Hammond calls this paradigm incomplete. As the state is not accountable for how the teachers and the students perform. NCLB identifies several ways in which it intends to improve the outlook of education in America in the years to come. It points out how â€Å"effective† teachers form the basis of a system that is foolproof. It also highlights in the commission report that the teacher student interaction, the involvement of presents and community members and their relationship is essential in bringing reform. also, the data systems of evaluating performance and keeping track of student grades and scores is vital to improve the foundations already laid down by NCLB. This however cannot be carried out unless the potential leaders in form of responsible and pioneering principals take hold of the systems in school across America. Drling hmmind colors in our minds a different image of the progress of NCLB one that is stagnant and not good enough. The lack of successful transfer of low performance students from private to public schools has only encouraged more drop outs, as due to lack of proper schooling

HS 5600 ASSIGNMENT 1 Example | Topics and Well Written Essays - 250 words - 1

HS 5600 1 - Assignment Example In addition, the system is non-linear. This provides a contradiction in the proportionality of the output in the context of the input. Other differentiating characteristics include the system being deterministic. This denotes the notion that chaotic behavior is random. Complexities are the factors that make a situation or event inexplicable. In this context, the author describes complexity as the inability to equate the real cause of any chaotic behavior in any situation. In addition, the chaos theory contains complex systems that contain numerous independent elements that continually interact with spontaneous organization and reorganization over time into elaborate structures. Meteorological predictions provide a foundation for determining the consequences as a result of various actions that affect the environment. In this context, predictions in the chaos theory attempt in giving a detailed report into the expected repercussions as a result of chaotic behavior. Also, they help in reducing fatalities and the prevention of chaotic behavior. During the Cold war, deterrence was quite successful despite the fact that there were one or two hitches focused towards preventing the war. Historically, however, deterrence seemed to work much less due to the fact that the cold war, with its bipolar simplicity and strong command on both sides. The threat of mutual, nuclear annihilation represents an extreme case of deterrence . Certainly, deterrence has broken down more often since the end of the Cold War than during it.Based on the case theory we can assume that the international system to be a state of self organizing critically, then we can consider that the Cold war, which was brought about by a breakdown in deterrence, is an instance in which at least parts of the of the system spill into chaos. 5. The article provides an example of a similar formula of deterrence involving nations. Using the formula

Review of A Journal Article on Population and Economics Term Paper

Review of A Journal Article on Population and Economics - Term Paper Example Moreover, health of aging population is also improving significantly and a large proportion of old-age people will live without any health complications. Productivity in any country will have bearings due to age-related changes in working populations. It is pertinent to note that population of age 60 and above was 200 million in 1950 but today, it has increased to 760 million and estimated to be around 2 billion in 2050. Similarly, the numbers of people of age 80 and above were 14 million in 1950 that has raised to 11 million today and are likely to reach, based on the current projections, nearly 400 million by 2050. This is critical since these patterns of aging population were never seen in the past. Authors have attempted to examine the effects of aging population on world economy as a whole. Authors have drawn data from the United Nations and have projected age-wise population between 2005 and 2050. The projections are based on the medium-fertility rate. If the fertility rates ar e lower than this than the aging population will increase further. The fertility rate estimation between 2005 and 2050 is a matter of uncertainty and will lead to different results pertaining to elderly proportion. Even changes in mortality rate will influence the proportion of aging population significantly. Different continents will have varying estimation of ageing population. Africa will have a least proportion of the people with age 60 and higher while Europe is projected to have the highest proportion of aging population amongst all continents – to the tune of almost 34 percent followed by North America at 28 percent. Declining fertility rates, increasing life expectancy at birth and declining mortality rates in child are the factors behind increased proportion of aging population across most part of the world. Quantitative Methods Employed The authors have employed quantitative empirical methods to study the effect of ageing population on the world economy. They have d one population analysis by age group based on historical data from 1950 to 2005 and then projections made about age-group distribution for years beyond 2005 until 2050. With different fertility assumptions, an attempt has been made to estimate proportion of aging population beyond 2005 until 2050. It is believed that the issue will have its social as well as political fallouts too. For example, an aging population will need support in terms of healthcare services and income security for them. In developing countries, this, traditionally, has been taken care by families but as more and more women enter workforce, this is likely to change. Formation of nuclear families, migration towards urban centers and children leaving away from their parents will become a norm even in most of the developing countries posing new challenges for security of the elderly population. Most developed countries have social security plans in place to provide healthcare and income security; however, as the e lderly population goes up, it is likely to be a daunting task for most governments. In short, aging population may cause serious consequences on the economy of the nation. Behavioural Changes Authors emphasise that behaviour changes play a pivotal role in meeting the shortfall in labour supply and they can be described as per the following. Rising life expectancy is responded by the society by increasing the number of working years keeping the saving behaviour unchanged. Even if the people do not work for extra years, it is certain that increased life

Current Issues in the Persian Gulf Essay Example | Topics and Well Written Essays - 750 words

Current Issues in the Persian Gulf - Essay Example In addition, it has restricted outside access, built an airstrip and increased military presence on the island. Challenges that make gulf to be a troubled region is not a recent development, neither is it news for the Washingtoni. The vast oil reserves in the region make the balance of power in the gulf a concern for US policy makers. The US has been constantly involved in the gulf region, and this is consistent with the western security policy. Since the end of World War 2, US has ensured that gulf region gains stability and access to oil preservation increasesii. Washington policies in the gulf are not for US to gain access to water, but indeed ensure that there is stability of the oil market in the region. This is because oil shocks might negatively affect oil prices in the US. Geopolitics and energy security are not only the factors that engage US in the Gulf region. The American quest for ensuring stability in energy prices has been influenced by ideological considerations on the nature of US power. During the cold war, US strategy was to fight communism that was advocated by the Soviet Union. The collapse of communism in the gulf and end of soviet threat made the US reassess their strategies. The major concern of the US and other international communities in the Gulf is to ensure there is stability and security. This will reduce risk in energy markets around the world and encourage investors to invest in this regioniii. US and Iran relation is a step in the right direction as there will be international supervision of nuclear program, and in turn sanction in Iran will be uplifted. This will increase the living standards in the region and ensure there is stability in the region. This relation is an import step where dialogue is used instead of deploying troops in the region. Deploying troops in the Gulf region will certainly increase risk than reduces these risks. Iran

Gender issues in the real world Research Paper Example | Topics and Well Written Essays - 1250 words

Gender issues in the real world - Research Paper Example In three decades, the field of feminist psychology has grown in leaps and bounds, including coming with many methodological innovations. Feminist psychology has been an all-encompassing endeavour drawing from various areas of psychology, intellectualism and also a wide spectrum of feminist views and perspectives (Marecek, 2001). So she sets out in her study to look at this area and this she does by conducting a very wide and impressive literature review, looking at publications, studies, reviews and documents that discuss the area of psychology and gender. The conclusion, according to the study, is that in the past three decades, there have been many approaches adopted in studying women. The first is the most traditional study of the differences between the genders, which looks at the attributes and characteristics of each of the genders. The second approach looks more at the contextual nature of gender, recognizing that gender differences do not occur in a vacuum but in a continuum that includes social relations, interactive processes and language which form the structure of relations between men and women. The third one views the psychology in a more cultural context and draws on how they work together. Psychology Today Magazine Article This article looks at the psychological study of the differences in brain functioning between men and women. It looks at the work done by pre-eminent researchers who have done a lot of work on the differences between the male brain and the female brain (Kanazawa, 2008). The article, which appears in web version of Psychology Today magazine shows that the major difference between the male and female brain is that whereas the male brain is more concerned with systemizing tendencies and mechanistic thinking while the female brain is more concerned with empathizing tendencies and mentalistic thinking. This therefore means that the male brain is more concerned with understanding how things work out and tries to figure out how a sys tem works and what rules determine how it will work. In contrast the female brain identifies with the other person’s emotions and thoughts and seeks out to understand them and how best to connect with his or her emotions. The article goes on to explain that the current versions of the male and female brains has been caused by the sexual evolution of the two â€Å"types† of brains, with the men’s brain development being more linked to competition and the need to be the provider and the hunter and gatherer with all the aggressive tendencies that is required by all these activities. The women’s brains on the other hand evolved with the different tasks of mothering and the need to bond and emotionally connect with infants who are unable to work and the need to link up emotionally with others and make friends and allies in new environments, which happens when they enter into marriage. The article finally shows how these evolved male and female brains manifest themselves in different ways, with the men often spending their time in relationships trying to figure out how their girlfriends work while the women are more concerned with the emotional side of the relationships and tend to try and relate with rather than figure out how their boyfriends’ brains work. Comparison of the Study and the Article

Marketing Strategy for Next Generation Gym, UK Essay

Marketing Strategy for Next Generation Gym, UK - Essay Example It is a combination of all these factors that lead young people and professionals to join gyms and sports facilities all over the world, and the UK is no exception. In fact the trend for a healthier and happier lifestyle is catching on here. Being in good shape and eating a healthy diet not only help get us noticed and appreciated more at the office and on the street, but also make us irresistible to the opposite sex (Adcock et al, 2001, 17). Most of all, it makes us happy. This paper will look at the comparatively new concept of pay as you go gyms in the UK, with particular reference to Next Generation Club Gyms, a business registered in Hertfordshire, UK. It also has a branch in Swindon. Pay As You Go, a New Concept in the Sports Industry In fact, Next Generation Club Gyms have been the subject of quite rapt attention by sport enthusiasts and marketers alike, since it has introduced the concept of pay as you go in the UK. Similar in concept to schemes for mobile phones, this new in novation has made it easier for people who would like to get into shape or practice some sort of sport activity not on a regular but on an infrequent basis, when they get the time. Of course, it is always better to follow a regular schedule when you can but many of us have varying responsibilities at different times of the day, week or month which does not give us the opportunity to live a really scheduled life. For example, a salesman who has to travel to customers for offers and closing deals can hardly know in advance where he will be at a certain time of the day or how long the next sales call will take. One can similarly get stuck with a last minute assignment at the office, or have to stay an extra shift because somebody is ill or cannot make it. For these individuals, pay as you go certainly makes sense (Perner, Pricing, 2011). When you come to think of it, pay as you go also makes sense for lazy individuals who are not self determined enough to follow a regular schedule. So the idea certainly has merit for most of us. Pay as you go is not only cheaper; you can book a time slot in advance and ensure availability of facilities and equipment that lets you exercise, swim or play tennis at ease and without waiting in line for people to clear out before you get a chance. The concept caught on in the USA some time ago but has only been recently introduced in the UK (Garvin, 1988, 20). Available Facilities and Activities Presently the activities available at Next Generation Gym Club in Swindon are swimming, exercise, racquets and relaxing opportunities. Swimming allows you to relax after a hard day’s work, play casually in the pool or if you are more competitive, even learn some new strokes and increase your lap speed. There are swimming lessons for kids and grownups as well, including aqua aerobics for anyone who is interested. Training for body strength and flexibility include Body Blast, Body Pump, Body Pump Express, Pilates, Spin, Yoga and Boxercise , all scheduled at different times. A monthly schedule is drawn up in advance. Facilities for NG Kids include rugby, basketball, soft play activities, make and create, karate, teen gym street dance academy and booking for parties. There are also squash, tennis and badminton facilities with professional coaching available. The cafe and

Objectives Essay Example for Free

Objectives Essay 1. Goal is a Long-term end toward which programs or activities are directed. Goals are general and include no date of completion. Organizations are usually formed with the aim of achieving specific goals. These goals usually determine the direction that the organization will take over the long term and are not always very specific. Goals of organizations operating in the private sector generally revolve around the maximization of profits for the owners. However, some organizations also have other objectives that they may pursue in the short term. Objective is a specific, measurable, intermediate end that is achievable, sometimes measurable, and marks progress towards a goal. Objectives are action-orientated statements demonstrating the means to achieve a goal. Objectives often serve as the principles of setting up policies and evaluating the performance. An effective way to set objectives is to follow the well known acronym SMART. A SMART objective is specific, measurable, achievable, realistic and time scaled. An objective that follows SMART is more likely to succeed because it is clear (specific) so you know exactly what needs to be achieved. You can tell when it has been achieved (measurable) because you have a way to measure completion. A SMART objective is likely to happen because it is an event that is achievable. Before setting a SMART objective relevant factors such as resources and time were taken into account to ensure that it is realistic. Finally the timescale element provides a deadline which helps people focus on the tasks required to achieve the objective. The timescale element stops people postponing task completion. Policy is generally principles creating the course of action or way in which programs and activities are coordinated to achieve an identified goal or objective, supporting the action of the objectives. Scotia Airways is actually doing well at setting up goals, objectives and policies, it has set up several good goals: 1. Consumer goal is pertaining to the customer, Scotia Airways aims to provide exceptional value for money, unparalleled comfort and convenience to its passengers, every time they are on board; 2. Operational goals are the short-term tactics designed to achieve the company’s long-term strategy. The management team within Scotia have worked meticulously in planning and evaluating their services to ensure that customer focus in the primary driver of business success; 3. Product goals are related to the quality, amount and service. This kind of goal is really important to Scotia Airways because they are doing a lot of work on service. They now offer several value added services. 4. Secondary goals. After the above important goals are achieved in the future, Scotia Airways may have to setup this kind of goal such as ameliorate their relationship between staffs and management estates. The investors in Scotia Airways have set an ambitious program for expansion over the next five years to include long haul destinations, it’s a very important objective for Scotia Airways. Scotia Airways has a wide ranging reward policy. After finishing the supervision of work amounts, in sales apartment employee’s work performance increase an extra by 30% in a period of three months. By this way, Scotia Airways can motivate their staffs greatly. Organization In system theory, an open system is a system which continuously interacts with its environment or surroundings. The interaction can take the form of information, energy, or material transfers into or out of the system boundary, depending on the discipline which defines the concept. An open system is contrasted with the concept of an isolated system which exchanges neither energy, matter, nor information with its environment. The concept of an open system was formalized within a framework that enabled one to interrelate the organism, thermodynamics, and evolutionary theory. This concept was expanded upon with the advent of information theory and subsequently systems theory. Today the concept has its applications in the natural and social sciences. 3. Organizations have a formal structure which is the way that the organization is organized by those with responsibility for managing the organization. They create the formal structures that enable the organization to meet its stated objectives. Such as Marketing Department, Finance Department in Scotia Airways are all formal organizations. Actually Scotia Airways Co. is a formal organization. However, in the course of time an informal structure develops in most organizations which is based on the reality of day-to-day interactions between the members of the organization. This informal structure may be different from that which is set out on paper. Such as Scotia Airways may hold a party and employ some guards just for that party day. 4. Stakeholders are many different individuals or groups who affect or are affected by an organization. Stakeholders have an interest in a particular organization. External stakeholders: A party such as a customer, supplier, or lender that influences and is influenced by an organization but is not a member of it. Customers always enjoy better service. Since Scotia Airways’ major income is from its customers, it should change its service according to its customers’ demands. Internal Stakeholders: Individuals who reside inside the company as board members, executives, managers, employees, and trade unions and who benefit directly from their contributions to the growth of the company. In management estates, administrators always try to come up with better ideas making more profits for their companies and motivate their staffs to work harder. 5. Control often has an emotive connotation and is interpreted in a negative manner to suggest direction or command by the giving of orders. People may be suspicious of control systems and see them as emphasizing punishment, as an indication of authoritarian management and as a means of exerting pressure and maintaining discipline. In my opinion, since Scotia Airways doesn’t have many staffs right now and they are planning to expand their companies, I suggest they separate them into several groups and set up different objectives for each group. It’s also important to enhance motivation for staffs. They can hold some parties and informal organizations increasingly.

Factors that Shape US Energy Policy for Central Asia

Factors that Shape US Energy Policy for Central Asia Many factors influence the formulation of US energy policy. This chapter lays out the comprehensive description of the institutions which shape US energy policy towards Central Asia in general. Further this chapter would look into the international scenario, which has made US Congress, Federal Bureaucracy and Interest Groups in shaping Energy Policy towards Kazakhstan. And Turkmenistan Throughout the 1980s and before US experienced a major sorting out process, determining who would participate in energy policymaking and what the organisational arrangements for citizen involvement would be, though by 1980 the President and the Congress had been able to reach compromises on the basic issues faced by them following the onset of the energy crisis. With decisions on these basic issues the foundation for a stable national energy policy system appeared to be in place. The rudimentary energy policy system that was in place by 1980, provided the framework necessary to manage both energy supply and demand and to develop new resources (Barkenbus: 1982:413-414). Before going into the detailed focus on the role of iron triangle towards Kazakhstan and Turkmenistan in particular a brief understanding of how the policy is influenced by the Congress, Interests Groups and the Bureaucracy would be appropriate. Congress: Decision making in Congress where law is formulated, differ from decision making in the bureaucracy, where it is implemented. The institution setting greatly influences the policy outcome.[1] If not sovereign, Congress is considered to be prominent in formulating national energy policy. The president may mandate or oppose energy programs. But he is usually dictated by the Congress. It is the congress who can legislate on energy policy and raise the resources to underwrite it. The presidents freedom to act independently of congress on energy matters is limited severely by law, custom and political circumstances. Policy may be formulated by judges or administrators by interpreting or implementing a congressional enactment. But policy making by them is limited by congressional guidelines and over shift (Cowney: 1985: 82-86). Congress is characterized as house divided and authority dispersed between its two chambers. Its members are even torn by conflicting claims of local and national interest. Although congress is fragmented, it cant be denied that there is opportunity for policy innovation. From the apparent authority of the congress, it becomes clear that congress often reveals not power exercised but power dissipated, not policy made but policy paralysed(Victor:1984:313) The number of committees and subcommittees with energy as their title grew steadily from two in the 92nd Congress (1970-1972) to numerous in the110th Congress In the 96th Congress jurisdiction over some aspect of energy policy was claimed by more than 38 committees of the House of Representatives. The Senate traditionally has fewer committees than the House. Nevertheless it had at least ten major committees and several dozen subcommittees exercising some authority over energy legislation. The committees are proposed by the legislators desire to exercise some authority over major public issues. There also perpetuates jealously and competition between subcommittees and their leaders in energy policy making. Vigorous conflict over energy policy produced by each chambers over squabbling committees is intensified by rivalries between House and Senate energy committees. Such competitions are due to traditional differences between the two chambers, their divergent constituencies, constitutional responsibilities, institutional histories, conflicting personalities and committees aspirations. Moreover, the various energy committees within and between the two chambers, often respond to different energy interest (Raycraft and Kash: 1984:239-249). The fragmentation of power in the Congress is not only due to the formal division of authority among committees. There are other significant causes as well such as there are five hundred and thirty five geographical units the states and the congressional districts. These numerous factors constitute a vast array of diverse parochial interests with powerful influence in the legislative process. The Senator and the Representatives ambassador to Washington are regarded by the constituents as the guardian of the local interest. The Senator and the ambassadors are supported to play the role of energy provider and protector (Chubb: 1983:30-56). Bureaucracy: The executive branch of the federal government is a constitutional unit. Within the executive branch there are thirteen cabinet departments, fifty two independent agencies, five regulatory commissions and numerous lesser entities. More than 2.8 million employers divide their loyalties among these institutions. When closely observed, the executive branch is found to be a mosaic of disparate bureaucratic interests, each zealous to achieve its special mission. It is very challenging for the president to bring these different interests into accord with his own administrative programs. Its success depends upon his personality to a greater extent. The designs for the administrative management by the White House are continuously impeded by the political obstacles. In order to unite the bureaucracy, the president must constantly fight for the competing claims of agencies self interest, the political pressures upon the agencies from Congress and the pressure from an agencys own clientele. The federal bureaucracy is a plurality of institutional interests. They are always active in shaping the policies which will be administered by them. The bureaucracy is governments interest lobby (Chubb: 1983:30-56). Interest Group: The number of interest group striving to impress their will upon government is legion. Among one hundred thousand nationally organised interest groups in the United States, high proportions are involved in politics. When the politically active state and local groups are added to the already existing numerous interest groups, it becomes obvious that the interest groups are pervasive in the United States governmental system. They represent virtually every major social group with some claims upon government (Barkenbus: 1982:413-414). The formations of new groups are often triggered by the rise of new issues on the governmental agenda. And conversely, new issues on the agenda reflect the growing political influence of new interests. The number of interest groups in national energy policy increased significantly after 1973 oil shock. Oil companies have been the major interest groups in terms of energy policy formulation. While analysing the role of oil companies it can be said that they are playing the role of nongovernmental bodies. They have added a degree of variety to international political relationship. Sometimes they have even made the international relationships complicated which might otherwise have been quite harmonious. But in reality oil industries are primarily economic institutions. One of the characteristics of the economic actors is that so long as they can function reasonably well, they generally accept the status quo. No industry can sacrifice its profit for the sake of political principle. None of the oil industry can turn down the chance of developing important new deposits. Of course companies have to choose between possible ventures. The political climate of the countries in which these ventures fall is the only one of the factors taken into account. The political tactics available to compan ies for gaining access to promising markets are limited (Scott: 2005:12-149). The strategies adopted by the oil company are usually predictable but along with the strategies, the leadership of the company also matter to a greater extent. The underlying economics of the industry make it possible to predict the general direction in which companies will move. The development of oil companies can be stimulated by ease of access of the various oil deposit the source of existing oil production the size development and location of the worlds leading economies some facts about the motivation of the imperial powers some assumptions about the behavior of companies in an international oligopoly Some information about the level of government experience in most of the potential producing countries. The sheer size of the US market and the fact that there was a significant oil industry in existence in USA meant that American oil companies where bound to play a dominant role. As an analyst has noted that US had no history of significant engagement with the Central Asian Region before 1990s. It is the discovery of energy resources of the Caspian Sea that made the region important of the US foreign policy makers. The Central Asia and the Caspian Region is blessed with abundant oil and gases that can enhance the lives of the regions resident and provide energy for growth in both Europe and Asia. The impact of these resources on US commercial interests and US foreign policy is very significant. The United States first official foray into the Caucasus and Central Asia came in 1991 during the Bush administration. But it was not until major oil contracts were signed between US oil companies and the government of Kazakhstan and Azerbaijan in 1993-1994 that the region really began to register on the radar screen of the American public. The commercial interests of US oil companies in exploiting new energy reserves gave US policymakers a specific interest to protect in the Caucasus and Central Asia the US has come to see Caspian resources as one of the few prospects for diversifying world energy supply away from the Middle East. The role of the iron triangle in formulating US energy policy towards Central Asia can be understood by 1998 Congressional Hearing. In this hearing the subcommittee on Asia and Pacific examined the US interest in the region. It was acknowledged by the US Congress that Kazakhstan and Turkmenistan possess large reserves of oil and natural gas. It was further observed that Uzbekistan has oil and gas reserves that may make it self sufficient in energy and gain revenue through exports (Congressional Hearings: 1998). According to Mr. Bereuter the president of the Subcommittee on Asia and Pacific stated that US policy goals regarding energy resources in the region were based on the following factors- Independence of the states and their ties to the West. Breaking Russias monopoly over the oil and gas transport routes. Promoting Western energy security through diversified suppliers encouraging the construction of East West pipeline and, Isolating Iran. In addition it was stated by the then Deputy Secretary of State Strobe Talbot, that the United States sought to discourage any one country from gaining control over the region, but rather urged all responsible States to cooperate in the exploitation of regional oil and resources. It was noted that the Central Asian Region has emerged as one of the significant opportunities for investment opportunities for a broad range of American companies. This in turn will stimulate the economic development of the region. Debates in the Congress According to the Department of Energy, US has following interest in the region- Energy security Strategic interest and Commercial interest in promoting Caspian region energy development. It is further observed that US has an interest in strengthening global energy security through diversification, and the development of these new sources of supply. Caspian export would diversify rather than concentrate world energy supplies. This will help in avoiding the over reliance on the Persian Gulf. It was agreed in the Congress that United States has strategic interests in supporting the independence, sovereignty, and prosperity of the Newly Independent States of the Caspian Basin. And it was desired to assist the development of these States into democratic, sovereign members of the world community of the nations, enjoying unfettered access to world markets without pressure or undue influence from the region. In other words, it can be observed that the iron triangle i.e., Congress, Bureaucracy and the Interest Group have following four objectives with regard to Central Asia: Promoting Multiple Export Route-The administrations policy is centered on rapid development of the regions resources and the transportation and sale of those resources to hard currency markets to secure the independence of these new countries. The US government has promoted the development of multiple pipelines and diversified infrastructure networks to open and integrate these countries into the global market and to foster regional cooperation. It was decided to give priority to support efforts by the regional governments and the private sector to develop and improve east-west linkage and infrastructure networks through Central Asia and the Caucasus. A Eurasian energy transport corridor incorporating a trans-Caspian segment with a route from Baku, Azerbaijan, through the Caucasus and Turkey to the Mediterranean port was included. Emphasizing on Commerciality-It was realized that the massive infrastructure projects must be commercially competitive before the private sector and the international financial community can move forward. Keeping this in mind the Baku-Ceyhan pipelines was most endorsed. Cooperating with Russia-It was decided to support the continued Russian participation in Caspian participation in the Eurasian corridor was also encouraged. For this purpose US companies are working in partnership with the Russian firms in the Caspian. Isolating Iran- the US Government opposes pipelines through Iran because development of Irans oil and gas industry and pipelines from the Caspian Basin through Iran will seriously undercut the development of East-west infrastructure, and give Iran improper leverage over economies of the Caucasus and Central Asian States. Similarly, John Maresca, Vice President of International Relations, Unocal Corporation, focused on three issues with regard to Central Asia- The need for multiple pipeline routes for Central Asian oil and gas resources. The need for US support for international and Regional efforts to achieve balanced reforms and development of appropriate investment in the region. While emphasising these issues, argued for the repeal or removal of section 907 of the Freedom Support Act, because this section unfairly restricts US Government assistance to the government of Azerbaijan and limits US influence in the region. Unocal and other American companies are ready to develop cost-effective export routes for Central Asian resources. So, after this analysis of the iron triangle in terms of the Central Asian Region it can be concluded that the Cooperation of power, federalism, interest group pluralism and other checks and balances in the constitutional architecture of the United States political system created a strong bias towards bargaining, compromise and instrumentalism in energy policy making today. the electoral cycle often compels energy policy to conform to the economic and political bias of legislative constituencies charged with implementing energy policies, attempt to impose upon those policies their own bureaucratic values, their unique political per spective growing from their several missions and many other institutional concerns sub government and the public opinion also influence policy. These elements in the policy process have long been recognized. They emphasise a truth often ignored in discussions of US public policy. The United States and the rest of the world are facing energy problem. The era of abundant, reliable, low-cost energy is in the past. Currently the condition will be that of scarcity and the continuing need to manage the complex and difficult issues associated with the use, supply, pricing and trading of energy to prevent economic, political, environmental and military crisis. Imported oil is the heart of energy problem. As mentioned earlier the economic growth and the consequent growth in energy demand requires increased need for imported oil. To understand the full scope of Congressional perception focus on Energy Security act-S.932 of 1980 is essential. Energy Security Act S. 932 Representative Christopher J. Dodd on June 25, 1980 observed that with respect to the energy act it represented a long overdue commitment of federal dollars to promote energy independence for America. He acknowledged the growing dependency of United States on imported oil. The Energy Security Act provides 25 billion for exploration of a variety of energy alternatives including synthetic fuels renewable resources, conservation, and gasohol. It mandated two actions -the filling of our strategic petroleum reserves and the study of acid rain problem. Though the historical energy security act comprehensively dealt with the synthetic fuel but it was not entirely about the synthetic fuel bill. This act also provide $3.1 billion to establish conservation and solar banks that will offer federal subsidies in the form of below market loans, loan guarantees and grant to finance solar and conservation work in homes, apartments and small business. Christopher J. Dodd argued that $ 3 billion includ ed in this bill to the energy bank was not enough to release the full potential of conservation and solar energy. But this funding was perceived to be a good beginning, and believed that the experience of the coming years will prove the worth these alternatives to continue oil imports. He further argued that the United States government must devise an effective national strategy to break the hold of OPEC and energy conservation in our homes and business should be taken as a vital part of that strategy (Congressional Hearings: 1980) The former Clinton Administration stressed that U.S. support for free market reforms directly served U.S. national interests by opening new markets for U.S. goods and services, and sources of energy and minerals. U.S. private investment committed to Central Asia had greatly exceeded. U.S. energy companies have committed to invest billions of dollars in Kazakhstan, Turkmenistan and Uzbekistan. U.S. trade agreements have been signed and entered into force with all the Central Asian States. By focusing on Congressional debates on Energy Policy with particular focus on Central Asia, the complexity of policy formulation can be understood. Further the various Hearings held by the Congress have also provided significant evidence that explains the changed nuances of Central Asia policy. It also helps to illustrate the argument that the Congress considered the Central Asian Region very important for US interest. In particular Congressional understanding of the Enormous Energy Export Potential that could ease Americas energy problem went a long way in shaping US policy towards Central Asia. For instance, despite concern on human right violent political movement, US government virtually supported the US government decision to promote a new pipeline from Kazakh to Azerbaijan and from Ceyhan to Turkey. Some analysts have noted that there has been different emphasis on the level of US involvement in the CAR. According to some there have been linkages between the adequate progress in democratisation and improving the human rights. The importance of energy resources to US has been disputed in early phase of 1990. However, the Congressional interest in Central Asia was reflected in the passage of Silk Road in late 1999 which enhanced US policy alteration, humanitarian needs, economic development (including energy pipelines) and communications, democracy and the creation of civil societies in the South Caucasian and Central Asia. The Bush energy policy was directed towards securing cheap oil because US oil consumption was below projected to increase by one-third over the next two decades. The white House during Bush Administration also had for greater domestic drilling and wants to open the Arctic National Wildlife Refuge to the oil industry. The Administrations National Energy Policy Development Group, led by Vice President Dick Cheney, acknowledged in a May 2001 report that US oil production will fall 12% over the next 20 years. As a result US dependence on imported oil which has risen to a great extent (CRS Report: 2005). September 11 brought with it a dramatic reconfiguration of the entire international security environment as well as a fundamental shift in the ranking of American foreign and security priorities. Virtually every other foreign policy priority was now subordinated to the effort to create an anti-terrorist coalition (Chenoy: 2001:149-160). It is observed that the September 11 attack on the World Trade Centre and Pentagon has underlined the connection between oil and politics. When it became confirmed that the most of the hijackers were from Saudi Arabia, it impacted on the oil market to a great extent. Since Saudi Arabia constitutes one fourth of the total petroleum reserves, United States had to look for some other alternative sources in order to fulfill its energy requirement. United States is dependent on foreign oil for its 58% of energy requirement which is likely to increase up to 65% by 2020 (Chenoy: 2001:149-160). The counterstrike of September 11 shattered the old barriers and opened new horizons. The United States Congress acknowledged the importance of the Central Asian republic for the fulfillment of its oil requirement in the 107th Congress. It was acknowledged that the Central Asian Region is inflicted with terrorist activities and hence consequently political instability. The support from the Congress and the administration was urged. It was argued that the US assistance in developing these new economics will be crucial to business success. A strong technical assistance progress throughout the region was endorsed. After September 11 Washingtons approval of more than US$1.4 billion for the economic recovery of barren and battle scarred Afghanistan provides the Bush administration with possible insurance for deepening its petro-political sphere of influence along Russias boarder in the form of revived Trans-Afghan pipeline. Further it was realized by the US energy analysts that the vast reservoir of oil and gas can be protected by the deployment of US special operations forces to Georgia because it will neutralize Russias influence in the region. It is noteworthy that the Vice president Dick Cheney, former CEO of the oil services company Halliburtons also a veteran of the American oil industrys presence in the Caspian Basin is sufficient to manifest the US presence in the region With almost $30 billion already invested by US oil companies in Kazakhstan, Turkmenistan, Uzbekistan and Azerbaijan, the suggested Afghan route would cost only one-half the amount of the other alternative which would run through Georgia to Turkeys Mediterranean coast ( Alam :2002:5-26). The Caspian Sea region is widely viewed as important to world markets because of its large oil and gas reserves. Most Energy Company regards the Caspian Basin as the Persian Gulf of the 21st century. In Central Asia and elsewhere, America found new friends in hour of need. It can be said that the Sept. 11 have awakened many Americans to the interdependence to the even -smaller world, to their vulnerability especially in energy. The growing American stake in Central Asia is one response to that. It can be said that the American war against terrorism has also become a battle to control the energy resources of the Central Asian Region. Since Central Asian region can offer the United States a rare opportunity to diversify world oil supply, it could be one of the most important areas of US foreign policy. However, in Washington D.C., and especially in the US congress, foreign policy tends to be an elitist sport. Few members of the Congress focus on foreign policy and accepted by the most of the Americans. As a result, few members of the congress view foreign policy and the Caspian region in strategic terms. The Central Asian Region is viewed by the most members of the congress through one or more of the following perspectives- The Azerbaijan- Armenia issue US policy towards Iran US policy towards Russia Partition and domestic politics. Among the four factors mentioned above, the fourth one i.e. that is partition and domestic politics is perhaps the most important. Members of the Congress tend to be overly responsive to their domestic constituents and some even support certain ethnic groups as a way to raise campaign contribution. This leads to a phenomenon termed ethnic politics. Critics argued that ethnic politics have driven US policy towards both Azerbaijan and Iran (Congressional Hearing: 2001). In order to understand the attitude of Congress towards the Central Asian Region in the aftermath of Sept. 11 attack on World Trade Centre (WTC) and Pentagon, the congress role towards Azerbaijan-America issue, Iran, and Russia requires a brief consideration. The Azerbaijan-Armenia issue On the Azerbaijan Armenia issue, congress tends to favour Armenia and uses foreign aid legislation as a means of exerting pressure on Armenias neighbors particularly Azerbaijan and Turkey. The most obvious example of this is the section 907 at the Freedom Support Act which prohibits US government aid to the government of Azerbaijan. Concern over the plight of Azeri refugee and the increasing importance of United States investment in the Azeri oil sectors; have led Congress to adjust section 907 incrementally each year since it took effect in January 1993. Nevertheless, Congressional attitude towards the region began to change significantly in 1997. The changes occurred for several reasons: The presidential elections in Armenia appeared to be less than free and fare this damaged Armenias image on Capitol Hill and embarrassed lawmaker who had clouted Armenia as the democratic ideal for the region. Some members of the congress thought the Armenia lobby had gone too far and was out of step with the realities on ground. The Armenian lobby was pushing for what some members of Congress thought was excessive legislation. As the deadline for a decision on the main export pipeline route approaches Congressional interest has continued to rise. There was the increased number of Congressional delegation traveling in the region. At least five delegations visited the region in 1997 including one led by senator McConnell. However, since his trip he has taken a more balanced approach to the region. This is noteworthy because McConnell is the chairman of the Senate appropriations subcommittee on foreign operations, the subcommittee which has jurisdiction over section 907. The House of Representatives, however, continued to reject attempt to weaken section 907. Congress tends to be an incremental body and the facts demonstrate that there is momentum towards making further revisions in section 907. As a result of this increasing momentum it is believed that the US Senate is now positioned to make substantial changes in 907. Senate headway will be critical because progress will have to be made in a House-Senate c onference committee and the House of Representatives continues to be solidly on the side of Armenia and is likely to support a significant softening or repeal of S.907. A major problem especially in the House is that section 907 is not on the radar screen for most Representatives since 907 is usually inserted into the foreign operations appropriations legislation at the subcommittee level, only 13 House member-less than 3% have an opportunity to vote up or down on 907 each year (Congressional Hearing:1997). Congressional attitude towards Iran: Iran is the most stable country politically and economically bordering the Caspian, and offers the most attractive pipeline routes: it is important to understand congressional attitude towards that country. Congress is opposed to Iran and has limited the Clintons administrations flexibility in dealing with it. In this respect, Congress has played a significant role. In the opinion of Congress no country undermines American interest more than Iran. Since the Iranian revolution the United States has sought to isolate Iran diplomatically and politically and more recently economically. Congress has passed the Iran-Libya Sanction Act (ILSA). This act was passed without a single member of congress voting against the sanctions. Congress has rarely adopted any controversial piece of legislation unanimously which have a wide range of implications. This law is causing problem for the companies trying to move Caspian oil to market. US companies are prohibited from partnering with Iranian firms in the Caspian (CRS Report: 2003). US Policy towards Russia Another regional issue clouding Congress view of the region is US policy towards Russia. Congress is skeptical of Russia, and its relations with Iran. For many members of Congress opposing the Soviet Union was a major pillar in their political philosophy during 1980s. Today there are still resident effects of this cold war attitude especially Republican party. In 1997 dozens of bills were introduced seeking to impose sanctions on Russia. Congress has consistently opposed Russian efforts of nuclear cooperation with Iran. Congress views the possible pipeline alternative through Russia, southern route through Iran, eastern route through Afghanistan and western rout through Georgia and Today Congressional view of the pipeline can be summed up in three ways: congress is opposed to pipelines routes through Iran, Congress is skeptical of routes through Russia, and is dubious of routes through Afghanistan. Turkey and Georgia are the only options in view of the Congress. Therefore, it is obvious why Congress has expressed support for pipeline along an east-west axis. This also helps to explain why the US government (Congress and the administration) are increasingly calling the Baku Ceyhan route the preferred route because it belongs NATO, ally, and avoid Iran and Russia. During 1998, Congress continued to advocate isolation of Iran and continue the incremental progress in US relations with Azerbaijan. While formulating energy policy for the United States, Congress is the preeminent force. But congress is a house divided. Its authority is dispersed between the two chambers. It is due to the fact that its members are usually torn by the conflicting claims of local and national interest. In spite of having fragmented opportunity it can be expected for policy innovation. On the brighter side, the United States has important energy interests in Central Asia. With its recent energy resources, Kazakhstan could become one of the largest oil exporters in the world. The United States has a strong interest in this oil getting to the world market at reasonable prices via multiple pipelines (Congressional Hearings: 1998). The 107th Congress supported governments efforts to promote a new pipeline from Kazakhstan to Azerbaijan, Georgia, and Turkey, the gateway to the entire Western oil market. It was also acknowledged that in addition to energy interests, the United States also has a strong interest in working with the existing Central Asia governments on combating drugs and on divesting themselves of their weapons of mass destruction materials ( Congressional Hearings:2001). Finally, domestic security concerns for the Central Asian region particularly about violent political movements also got due consideration. The world gets nearly hal Factors that Shape US Energy Policy for Central Asia Factors that Shape US Energy Policy for Central Asia Many factors influence the formulation of US energy policy. This chapter lays out the comprehensive description of the institutions which shape US energy policy towards Central Asia in general. Further this chapter would look into the international scenario, which has made US Congress, Federal Bureaucracy and Interest Groups in shaping Energy Policy towards Kazakhstan. And Turkmenistan Throughout the 1980s and before US experienced a major sorting out process, determining who would participate in energy policymaking and what the organisational arrangements for citizen involvement would be, though by 1980 the President and the Congress had been able to reach compromises on the basic issues faced by them following the onset of the energy crisis. With decisions on these basic issues the foundation for a stable national energy policy system appeared to be in place. The rudimentary energy policy system that was in place by 1980, provided the framework necessary to manage both energy supply and demand and to develop new resources (Barkenbus: 1982:413-414). Before going into the detailed focus on the role of iron triangle towards Kazakhstan and Turkmenistan in particular a brief understanding of how the policy is influenced by the Congress, Interests Groups and the Bureaucracy would be appropriate. Congress: Decision making in Congress where law is formulated, differ from decision making in the bureaucracy, where it is implemented. The institution setting greatly influences the policy outcome.[1] If not sovereign, Congress is considered to be prominent in formulating national energy policy. The president may mandate or oppose energy programs. But he is usually dictated by the Congress. It is the congress who can legislate on energy policy and raise the resources to underwrite it. The presidents freedom to act independently of congress on energy matters is limited severely by law, custom and political circumstances. Policy may be formulated by judges or administrators by interpreting or implementing a congressional enactment. But policy making by them is limited by congressional guidelines and over shift (Cowney: 1985: 82-86). Congress is characterized as house divided and authority dispersed between its two chambers. Its members are even torn by conflicting claims of local and national interest. Although congress is fragmented, it cant be denied that there is opportunity for policy innovation. From the apparent authority of the congress, it becomes clear that congress often reveals not power exercised but power dissipated, not policy made but policy paralysed(Victor:1984:313) The number of committees and subcommittees with energy as their title grew steadily from two in the 92nd Congress (1970-1972) to numerous in the110th Congress In the 96th Congress jurisdiction over some aspect of energy policy was claimed by more than 38 committees of the House of Representatives. The Senate traditionally has fewer committees than the House. Nevertheless it had at least ten major committees and several dozen subcommittees exercising some authority over energy legislation. The committees are proposed by the legislators desire to exercise some authority over major public issues. There also perpetuates jealously and competition between subcommittees and their leaders in energy policy making. Vigorous conflict over energy policy produced by each chambers over squabbling committees is intensified by rivalries between House and Senate energy committees. Such competitions are due to traditional differences between the two chambers, their divergent constituencies, constitutional responsibilities, institutional histories, conflicting personalities and committees aspirations. Moreover, the various energy committees within and between the two chambers, often respond to different energy interest (Raycraft and Kash: 1984:239-249). The fragmentation of power in the Congress is not only due to the formal division of authority among committees. There are other significant causes as well such as there are five hundred and thirty five geographical units the states and the congressional districts. These numerous factors constitute a vast array of diverse parochial interests with powerful influence in the legislative process. The Senator and the Representatives ambassador to Washington are regarded by the constituents as the guardian of the local interest. The Senator and the ambassadors are supported to play the role of energy provider and protector (Chubb: 1983:30-56). Bureaucracy: The executive branch of the federal government is a constitutional unit. Within the executive branch there are thirteen cabinet departments, fifty two independent agencies, five regulatory commissions and numerous lesser entities. More than 2.8 million employers divide their loyalties among these institutions. When closely observed, the executive branch is found to be a mosaic of disparate bureaucratic interests, each zealous to achieve its special mission. It is very challenging for the president to bring these different interests into accord with his own administrative programs. Its success depends upon his personality to a greater extent. The designs for the administrative management by the White House are continuously impeded by the political obstacles. In order to unite the bureaucracy, the president must constantly fight for the competing claims of agencies self interest, the political pressures upon the agencies from Congress and the pressure from an agencys own clientele. The federal bureaucracy is a plurality of institutional interests. They are always active in shaping the policies which will be administered by them. The bureaucracy is governments interest lobby (Chubb: 1983:30-56). Interest Group: The number of interest group striving to impress their will upon government is legion. Among one hundred thousand nationally organised interest groups in the United States, high proportions are involved in politics. When the politically active state and local groups are added to the already existing numerous interest groups, it becomes obvious that the interest groups are pervasive in the United States governmental system. They represent virtually every major social group with some claims upon government (Barkenbus: 1982:413-414). The formations of new groups are often triggered by the rise of new issues on the governmental agenda. And conversely, new issues on the agenda reflect the growing political influence of new interests. The number of interest groups in national energy policy increased significantly after 1973 oil shock. Oil companies have been the major interest groups in terms of energy policy formulation. While analysing the role of oil companies it can be said that they are playing the role of nongovernmental bodies. They have added a degree of variety to international political relationship. Sometimes they have even made the international relationships complicated which might otherwise have been quite harmonious. But in reality oil industries are primarily economic institutions. One of the characteristics of the economic actors is that so long as they can function reasonably well, they generally accept the status quo. No industry can sacrifice its profit for the sake of political principle. None of the oil industry can turn down the chance of developing important new deposits. Of course companies have to choose between possible ventures. The political climate of the countries in which these ventures fall is the only one of the factors taken into account. The political tactics available to compan ies for gaining access to promising markets are limited (Scott: 2005:12-149). The strategies adopted by the oil company are usually predictable but along with the strategies, the leadership of the company also matter to a greater extent. The underlying economics of the industry make it possible to predict the general direction in which companies will move. The development of oil companies can be stimulated by ease of access of the various oil deposit the source of existing oil production the size development and location of the worlds leading economies some facts about the motivation of the imperial powers some assumptions about the behavior of companies in an international oligopoly Some information about the level of government experience in most of the potential producing countries. The sheer size of the US market and the fact that there was a significant oil industry in existence in USA meant that American oil companies where bound to play a dominant role. As an analyst has noted that US had no history of significant engagement with the Central Asian Region before 1990s. It is the discovery of energy resources of the Caspian Sea that made the region important of the US foreign policy makers. The Central Asia and the Caspian Region is blessed with abundant oil and gases that can enhance the lives of the regions resident and provide energy for growth in both Europe and Asia. The impact of these resources on US commercial interests and US foreign policy is very significant. The United States first official foray into the Caucasus and Central Asia came in 1991 during the Bush administration. But it was not until major oil contracts were signed between US oil companies and the government of Kazakhstan and Azerbaijan in 1993-1994 that the region really began to register on the radar screen of the American public. The commercial interests of US oil companies in exploiting new energy reserves gave US policymakers a specific interest to protect in the Caucasus and Central Asia the US has come to see Caspian resources as one of the few prospects for diversifying world energy supply away from the Middle East. The role of the iron triangle in formulating US energy policy towards Central Asia can be understood by 1998 Congressional Hearing. In this hearing the subcommittee on Asia and Pacific examined the US interest in the region. It was acknowledged by the US Congress that Kazakhstan and Turkmenistan possess large reserves of oil and natural gas. It was further observed that Uzbekistan has oil and gas reserves that may make it self sufficient in energy and gain revenue through exports (Congressional Hearings: 1998). According to Mr. Bereuter the president of the Subcommittee on Asia and Pacific stated that US policy goals regarding energy resources in the region were based on the following factors- Independence of the states and their ties to the West. Breaking Russias monopoly over the oil and gas transport routes. Promoting Western energy security through diversified suppliers encouraging the construction of East West pipeline and, Isolating Iran. In addition it was stated by the then Deputy Secretary of State Strobe Talbot, that the United States sought to discourage any one country from gaining control over the region, but rather urged all responsible States to cooperate in the exploitation of regional oil and resources. It was noted that the Central Asian Region has emerged as one of the significant opportunities for investment opportunities for a broad range of American companies. This in turn will stimulate the economic development of the region. Debates in the Congress According to the Department of Energy, US has following interest in the region- Energy security Strategic interest and Commercial interest in promoting Caspian region energy development. It is further observed that US has an interest in strengthening global energy security through diversification, and the development of these new sources of supply. Caspian export would diversify rather than concentrate world energy supplies. This will help in avoiding the over reliance on the Persian Gulf. It was agreed in the Congress that United States has strategic interests in supporting the independence, sovereignty, and prosperity of the Newly Independent States of the Caspian Basin. And it was desired to assist the development of these States into democratic, sovereign members of the world community of the nations, enjoying unfettered access to world markets without pressure or undue influence from the region. In other words, it can be observed that the iron triangle i.e., Congress, Bureaucracy and the Interest Group have following four objectives with regard to Central Asia: Promoting Multiple Export Route-The administrations policy is centered on rapid development of the regions resources and the transportation and sale of those resources to hard currency markets to secure the independence of these new countries. The US government has promoted the development of multiple pipelines and diversified infrastructure networks to open and integrate these countries into the global market and to foster regional cooperation. It was decided to give priority to support efforts by the regional governments and the private sector to develop and improve east-west linkage and infrastructure networks through Central Asia and the Caucasus. A Eurasian energy transport corridor incorporating a trans-Caspian segment with a route from Baku, Azerbaijan, through the Caucasus and Turkey to the Mediterranean port was included. Emphasizing on Commerciality-It was realized that the massive infrastructure projects must be commercially competitive before the private sector and the international financial community can move forward. Keeping this in mind the Baku-Ceyhan pipelines was most endorsed. Cooperating with Russia-It was decided to support the continued Russian participation in Caspian participation in the Eurasian corridor was also encouraged. For this purpose US companies are working in partnership with the Russian firms in the Caspian. Isolating Iran- the US Government opposes pipelines through Iran because development of Irans oil and gas industry and pipelines from the Caspian Basin through Iran will seriously undercut the development of East-west infrastructure, and give Iran improper leverage over economies of the Caucasus and Central Asian States. Similarly, John Maresca, Vice President of International Relations, Unocal Corporation, focused on three issues with regard to Central Asia- The need for multiple pipeline routes for Central Asian oil and gas resources. The need for US support for international and Regional efforts to achieve balanced reforms and development of appropriate investment in the region. While emphasising these issues, argued for the repeal or removal of section 907 of the Freedom Support Act, because this section unfairly restricts US Government assistance to the government of Azerbaijan and limits US influence in the region. Unocal and other American companies are ready to develop cost-effective export routes for Central Asian resources. So, after this analysis of the iron triangle in terms of the Central Asian Region it can be concluded that the Cooperation of power, federalism, interest group pluralism and other checks and balances in the constitutional architecture of the United States political system created a strong bias towards bargaining, compromise and instrumentalism in energy policy making today. the electoral cycle often compels energy policy to conform to the economic and political bias of legislative constituencies charged with implementing energy policies, attempt to impose upon those policies their own bureaucratic values, their unique political per spective growing from their several missions and many other institutional concerns sub government and the public opinion also influence policy. These elements in the policy process have long been recognized. They emphasise a truth often ignored in discussions of US public policy. The United States and the rest of the world are facing energy problem. The era of abundant, reliable, low-cost energy is in the past. Currently the condition will be that of scarcity and the continuing need to manage the complex and difficult issues associated with the use, supply, pricing and trading of energy to prevent economic, political, environmental and military crisis. Imported oil is the heart of energy problem. As mentioned earlier the economic growth and the consequent growth in energy demand requires increased need for imported oil. To understand the full scope of Congressional perception focus on Energy Security act-S.932 of 1980 is essential. Energy Security Act S. 932 Representative Christopher J. Dodd on June 25, 1980 observed that with respect to the energy act it represented a long overdue commitment of federal dollars to promote energy independence for America. He acknowledged the growing dependency of United States on imported oil. The Energy Security Act provides 25 billion for exploration of a variety of energy alternatives including synthetic fuels renewable resources, conservation, and gasohol. It mandated two actions -the filling of our strategic petroleum reserves and the study of acid rain problem. Though the historical energy security act comprehensively dealt with the synthetic fuel but it was not entirely about the synthetic fuel bill. This act also provide $3.1 billion to establish conservation and solar banks that will offer federal subsidies in the form of below market loans, loan guarantees and grant to finance solar and conservation work in homes, apartments and small business. Christopher J. Dodd argued that $ 3 billion includ ed in this bill to the energy bank was not enough to release the full potential of conservation and solar energy. But this funding was perceived to be a good beginning, and believed that the experience of the coming years will prove the worth these alternatives to continue oil imports. He further argued that the United States government must devise an effective national strategy to break the hold of OPEC and energy conservation in our homes and business should be taken as a vital part of that strategy (Congressional Hearings: 1980) The former Clinton Administration stressed that U.S. support for free market reforms directly served U.S. national interests by opening new markets for U.S. goods and services, and sources of energy and minerals. U.S. private investment committed to Central Asia had greatly exceeded. U.S. energy companies have committed to invest billions of dollars in Kazakhstan, Turkmenistan and Uzbekistan. U.S. trade agreements have been signed and entered into force with all the Central Asian States. By focusing on Congressional debates on Energy Policy with particular focus on Central Asia, the complexity of policy formulation can be understood. Further the various Hearings held by the Congress have also provided significant evidence that explains the changed nuances of Central Asia policy. It also helps to illustrate the argument that the Congress considered the Central Asian Region very important for US interest. In particular Congressional understanding of the Enormous Energy Export Potential that could ease Americas energy problem went a long way in shaping US policy towards Central Asia. For instance, despite concern on human right violent political movement, US government virtually supported the US government decision to promote a new pipeline from Kazakh to Azerbaijan and from Ceyhan to Turkey. Some analysts have noted that there has been different emphasis on the level of US involvement in the CAR. According to some there have been linkages between the adequate progress in democratisation and improving the human rights. The importance of energy resources to US has been disputed in early phase of 1990. However, the Congressional interest in Central Asia was reflected in the passage of Silk Road in late 1999 which enhanced US policy alteration, humanitarian needs, economic development (including energy pipelines) and communications, democracy and the creation of civil societies in the South Caucasian and Central Asia. The Bush energy policy was directed towards securing cheap oil because US oil consumption was below projected to increase by one-third over the next two decades. The white House during Bush Administration also had for greater domestic drilling and wants to open the Arctic National Wildlife Refuge to the oil industry. The Administrations National Energy Policy Development Group, led by Vice President Dick Cheney, acknowledged in a May 2001 report that US oil production will fall 12% over the next 20 years. As a result US dependence on imported oil which has risen to a great extent (CRS Report: 2005). September 11 brought with it a dramatic reconfiguration of the entire international security environment as well as a fundamental shift in the ranking of American foreign and security priorities. Virtually every other foreign policy priority was now subordinated to the effort to create an anti-terrorist coalition (Chenoy: 2001:149-160). It is observed that the September 11 attack on the World Trade Centre and Pentagon has underlined the connection between oil and politics. When it became confirmed that the most of the hijackers were from Saudi Arabia, it impacted on the oil market to a great extent. Since Saudi Arabia constitutes one fourth of the total petroleum reserves, United States had to look for some other alternative sources in order to fulfill its energy requirement. United States is dependent on foreign oil for its 58% of energy requirement which is likely to increase up to 65% by 2020 (Chenoy: 2001:149-160). The counterstrike of September 11 shattered the old barriers and opened new horizons. The United States Congress acknowledged the importance of the Central Asian republic for the fulfillment of its oil requirement in the 107th Congress. It was acknowledged that the Central Asian Region is inflicted with terrorist activities and hence consequently political instability. The support from the Congress and the administration was urged. It was argued that the US assistance in developing these new economics will be crucial to business success. A strong technical assistance progress throughout the region was endorsed. After September 11 Washingtons approval of more than US$1.4 billion for the economic recovery of barren and battle scarred Afghanistan provides the Bush administration with possible insurance for deepening its petro-political sphere of influence along Russias boarder in the form of revived Trans-Afghan pipeline. Further it was realized by the US energy analysts that the vast reservoir of oil and gas can be protected by the deployment of US special operations forces to Georgia because it will neutralize Russias influence in the region. It is noteworthy that the Vice president Dick Cheney, former CEO of the oil services company Halliburtons also a veteran of the American oil industrys presence in the Caspian Basin is sufficient to manifest the US presence in the region With almost $30 billion already invested by US oil companies in Kazakhstan, Turkmenistan, Uzbekistan and Azerbaijan, the suggested Afghan route would cost only one-half the amount of the other alternative which would run through Georgia to Turkeys Mediterranean coast ( Alam :2002:5-26). The Caspian Sea region is widely viewed as important to world markets because of its large oil and gas reserves. Most Energy Company regards the Caspian Basin as the Persian Gulf of the 21st century. In Central Asia and elsewhere, America found new friends in hour of need. It can be said that the Sept. 11 have awakened many Americans to the interdependence to the even -smaller world, to their vulnerability especially in energy. The growing American stake in Central Asia is one response to that. It can be said that the American war against terrorism has also become a battle to control the energy resources of the Central Asian Region. Since Central Asian region can offer the United States a rare opportunity to diversify world oil supply, it could be one of the most important areas of US foreign policy. However, in Washington D.C., and especially in the US congress, foreign policy tends to be an elitist sport. Few members of the Congress focus on foreign policy and accepted by the most of the Americans. As a result, few members of the congress view foreign policy and the Caspian region in strategic terms. The Central Asian Region is viewed by the most members of the congress through one or more of the following perspectives- The Azerbaijan- Armenia issue US policy towards Iran US policy towards Russia Partition and domestic politics. Among the four factors mentioned above, the fourth one i.e. that is partition and domestic politics is perhaps the most important. Members of the Congress tend to be overly responsive to their domestic constituents and some even support certain ethnic groups as a way to raise campaign contribution. This leads to a phenomenon termed ethnic politics. Critics argued that ethnic politics have driven US policy towards both Azerbaijan and Iran (Congressional Hearing: 2001). In order to understand the attitude of Congress towards the Central Asian Region in the aftermath of Sept. 11 attack on World Trade Centre (WTC) and Pentagon, the congress role towards Azerbaijan-America issue, Iran, and Russia requires a brief consideration. The Azerbaijan-Armenia issue On the Azerbaijan Armenia issue, congress tends to favour Armenia and uses foreign aid legislation as a means of exerting pressure on Armenias neighbors particularly Azerbaijan and Turkey. The most obvious example of this is the section 907 at the Freedom Support Act which prohibits US government aid to the government of Azerbaijan. Concern over the plight of Azeri refugee and the increasing importance of United States investment in the Azeri oil sectors; have led Congress to adjust section 907 incrementally each year since it took effect in January 1993. Nevertheless, Congressional attitude towards the region began to change significantly in 1997. The changes occurred for several reasons: The presidential elections in Armenia appeared to be less than free and fare this damaged Armenias image on Capitol Hill and embarrassed lawmaker who had clouted Armenia as the democratic ideal for the region. Some members of the congress thought the Armenia lobby had gone too far and was out of step with the realities on ground. The Armenian lobby was pushing for what some members of Congress thought was excessive legislation. As the deadline for a decision on the main export pipeline route approaches Congressional interest has continued to rise. There was the increased number of Congressional delegation traveling in the region. At least five delegations visited the region in 1997 including one led by senator McConnell. However, since his trip he has taken a more balanced approach to the region. This is noteworthy because McConnell is the chairman of the Senate appropriations subcommittee on foreign operations, the subcommittee which has jurisdiction over section 907. The House of Representatives, however, continued to reject attempt to weaken section 907. Congress tends to be an incremental body and the facts demonstrate that there is momentum towards making further revisions in section 907. As a result of this increasing momentum it is believed that the US Senate is now positioned to make substantial changes in 907. Senate headway will be critical because progress will have to be made in a House-Senate c onference committee and the House of Representatives continues to be solidly on the side of Armenia and is likely to support a significant softening or repeal of S.907. A major problem especially in the House is that section 907 is not on the radar screen for most Representatives since 907 is usually inserted into the foreign operations appropriations legislation at the subcommittee level, only 13 House member-less than 3% have an opportunity to vote up or down on 907 each year (Congressional Hearing:1997). Congressional attitude towards Iran: Iran is the most stable country politically and economically bordering the Caspian, and offers the most attractive pipeline routes: it is important to understand congressional attitude towards that country. Congress is opposed to Iran and has limited the Clintons administrations flexibility in dealing with it. In this respect, Congress has played a significant role. In the opinion of Congress no country undermines American interest more than Iran. Since the Iranian revolution the United States has sought to isolate Iran diplomatically and politically and more recently economically. Congress has passed the Iran-Libya Sanction Act (ILSA). This act was passed without a single member of congress voting against the sanctions. Congress has rarely adopted any controversial piece of legislation unanimously which have a wide range of implications. This law is causing problem for the companies trying to move Caspian oil to market. US companies are prohibited from partnering with Iranian firms in the Caspian (CRS Report: 2003). US Policy towards Russia Another regional issue clouding Congress view of the region is US policy towards Russia. Congress is skeptical of Russia, and its relations with Iran. For many members of Congress opposing the Soviet Union was a major pillar in their political philosophy during 1980s. Today there are still resident effects of this cold war attitude especially Republican party. In 1997 dozens of bills were introduced seeking to impose sanctions on Russia. Congress has consistently opposed Russian efforts of nuclear cooperation with Iran. Congress views the possible pipeline alternative through Russia, southern route through Iran, eastern route through Afghanistan and western rout through Georgia and Today Congressional view of the pipeline can be summed up in three ways: congress is opposed to pipelines routes through Iran, Congress is skeptical of routes through Russia, and is dubious of routes through Afghanistan. Turkey and Georgia are the only options in view of the Congress. Therefore, it is obvious why Congress has expressed support for pipeline along an east-west axis. This also helps to explain why the US government (Congress and the administration) are increasingly calling the Baku Ceyhan route the preferred route because it belongs NATO, ally, and avoid Iran and Russia. During 1998, Congress continued to advocate isolation of Iran and continue the incremental progress in US relations with Azerbaijan. While formulating energy policy for the United States, Congress is the preeminent force. But congress is a house divided. Its authority is dispersed between the two chambers. It is due to the fact that its members are usually torn by the conflicting claims of local and national interest. In spite of having fragmented opportunity it can be expected for policy innovation. On the brighter side, the United States has important energy interests in Central Asia. With its recent energy resources, Kazakhstan could become one of the largest oil exporters in the world. The United States has a strong interest in this oil getting to the world market at reasonable prices via multiple pipelines (Congressional Hearings: 1998). The 107th Congress supported governments efforts to promote a new pipeline from Kazakhstan to Azerbaijan, Georgia, and Turkey, the gateway to the entire Western oil market. It was also acknowledged that in addition to energy interests, the United States also has a strong interest in working with the existing Central Asia governments on combating drugs and on divesting themselves of their weapons of mass destruction materials ( Congressional Hearings:2001). Finally, domestic security concerns for the Central Asian region particularly about violent political movements also got due consideration. The world gets nearly hal