The contribution of oil to Kazakhstan economy

analysis

The contribution of oil to Kazakhstan economy

By SRI ⋅ May 6, 2008 ⋅

Strengthening the position of the state as an influential and responsible participant in international oil and energy market is a common goal for all oil and gas-rich Caspian region countries.

Like all other Caspian countries, Kazakhstan has big amount of hydrocarbon and uranium resources and would like to use these resources for the future of Kazakhstan.

At that point we face with some important questions. What is the contribution of oil resources to Kazakhstan economy? Can Kazakhs really extract full benefit from hydrocarbon reserves of their own country? In order to give answers, I would like to give a brief information about progress of crude oil export revenues in Kazakhstan GDP, improvements in crude oil exports, country’s National Oil fund and unemployment rates of Kazakhstan.

It is a known fact that Kazakhstan is a fast growing economy and she is one of the biggest powers in Central Asia. Some of the world’s largest oil fields those have been discovered in the past 30 years, are in the South of Kazakhstan; in Kashagan (2000), Tengiz (1979) and Karachaganak (1979) regions.

According to BP World Energy Report-2007, currently Kazakhstan has 40 billion barrels of oil and 3 trillion cubic meters of natural gas reserves and probably this reserve will make the republic as one of the world’s largest hydrocarbon energy exporters in near future.

Kazakhstan has succeeded to increase net crude oil export volume around 45% between the years 2003-2007. Rising oil prices helped to increase the country’s export earnings and improved its external balance and country’s total crude oil export revenues reached to around 33 billion dollars.

Bekir Karabekmez - USAK’s Energy Review Newsletter/Turkish Weekly