The Middle East is not the only region ripe with political conflict whose future depends on oil, said participants in last night's panel discussion on "US and the Caspian: Crossroads or Barricade?"

The discussion, held at the Kennedy School of Government's ARCO Forum, emphasized the potential benefits of untapped oil reserves in the Caspian Sea while downplaying the ethnic strife in the region.

"Oil and natural gas are vital for the security and economies of the region," said John Deutch, Institute Professor at MIT and former director of the Central Intelligence Agency (CIA).

Other panelists included Araz Azimov, a foreign affairs official from Azerbaijan; Ashton Carter, Ford Foundation professor of science and international affairs at the Kennedy School; and Tim Cejka, vice president of Exploration for Exxon Venture, which explores opportunities for exploiting new oil resources in the former Soviet Union.

Each speaker said international cooperation in exploiting the new oil reserves is key to the future security and prosperity of the oil-rich but politically tense Caspian Sea region.

The area, which includes the former Soviet republics of Armenia, Azerbaijan and Georgia, has a history of ethnic conflict.

Carter stressed the Caspian's impact on U.S. security, before adding that all countries in the area must gain from the exploitation of the region's oil in order to prevent instability.

"It's crucial that no one be left out," Carter said. "It has to be a partial win for everyone, or it will be [a loss] for everyone."