BERLIN High oil prices, the continuing electricity crisis in California and the escalating violence in the Mideast have led the U.S. "to rediscover oil and gas reserves in the Caspian Sea," a senior U.S. energy expert was quoted as saying here Wednesday in the daily ***** Berliner Zeitung.*****

"The Caspian Sea region is of high priority to the U.S.," said senior energy expert Bernhard Reich who advises the U.S. Administration on oil and gas related issues.

"The Caspian oil will probably never reach the American market. We have however interest in the exploration and expansion of transport capacities which will reduce the price pressure on the global market," added Reich.

Washington, adamantly opposing the less expensive Iranian transport route of Caspian oil and gas, is pressing hard for the Baku-Ceyhan pipeline which is estimated to cost $2.4-5.2 billion.

Oil companies remain reluctant to invest in the American and Turkish initiative citing the high price tags, according to IRNA.

"Washington and Ankara are supporting this expensive and unpractical project for strategic rather than political considerations," said Vice-President of the influential Cato economic institute Ted Carpenter.

Some 200 billion barrels or roughly 10 percent of the world's potential oil reserves, are thought to lie under and around the sea. At today's prices it could add up to $4 trillion.