Energy is used by industry, transport services and households, and is often a substantial component of costs, with no close substitutes. Ensuring energy at reasonable prices is a precondition for economic development. Therefore energy policy is subject to public intervention in most countries. Energy security has become policy priority for the EU and US policy makers because of the recent increases in energy prices and expectation in global energy demand-expected to rise by nearly 60% over the next 20 years (Belkin, 2007). High demand has also raised questions regarding the future availability of global oil and gas reserves. Ensuring security of supply is generally a priority for energy policy, in particular when a country is dependent on imports. The United States and Europe have broadened the transatlantic energy dialogue to include joint promotion of collective energy security, energy efficiency and alternative energy sources. Leaders on both sides of the Atlantic have agreed to pursue US -EU cooperation to develop alternative and renewable energy technologies and to force coordinated policies with regard to Middle East, Caspian Region and Russia with substantial energy resources. Caspian Region is given a special importance in ensuring the energy security by diversifying the supply resources.
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