Energy is the most abundant and valuable natural resource of Central Asia and northwest China(1) and includes oil, gas, coal, electricity, and renewables. Kazakhstan has large reserves of oil and coal. Turkmenistan and Uzbekistan have significant reserves of gas. Kyrgyzstan produces significant amounts of hydroelectric power. Xinjiang, China has significant coal resources and an uncertain, although generally promising, potential for oil in the Tarim basin. These energy reserves form the basis for future economic growth and development in the region, and energy exports are beginning to generate important foreign exchange revenues. Although Central Asia enjoys vast energy development potential, there are obstacles to exploiting these resources, including limited infrastructure for transporting energy-notably oil and gas pipelines and electric transmission lines-in the region, political turmoil, payment difficulties, and inadequate energy policies. Despite these challenges, however, with appropriate government planning Central Asia is poised to become a significant world supplier of energy, especially in the oil and gas sectors, and the region is likely to diminish OPEC's influence of the global oil market over the long term. (c) 2005 Elsevier Ltd. All rights reserved.