After an eventful 2016 the Caspian will enjoy a less volatile year in 2017. Upstream operators and the region's hydrocarbon dependent economies will be more comfortable in a higher oil price confident that the toughest days are now behind them. Ramp up at Kazakhstan's super giant Kashagan field which began in 2016 will continue at a strong pace throughout 2017. Regional capital expenditure will be flat albeit ever more reliant on two of the world's largest post FID megaprojects: Tengizchevroil (TCO) expansion (Kazakhstan) and Shah Deniz Phase Two (Azerbaijan). Other operators will continue to benefit from much of the cost and efficiency savings of 2015 16.