Oil chronicles: One hot summer

energy

By SRI ⋅ October 28, 2008 ⋅

Over the first six months of this year the oil extraction in Kazakhstan increased by 7.8%, natural gas extraction by 15.6% and the production of gas condensate by 4%. The liquid hydrocarbon exports grew by 2.4% in comparison with the previous year’s figures.

Extraction and refining

According to the Kazakh Statistics Agency, 29.19 million tonnes of crude oil and 6.45 million tonnes of gas condensate were produced between January and June 2008. With oil, this figure increased by 7.8% and with gas condensate it increased by 4% in comparison with the same period of the last year.

In natural gas production, it totalled 29 billion m3, which is 15.6% higher than the same data recorded in the first six months of the year 2007. In particular, 9.89 billion m3 of gaseous natural gas was extracted (+14.7%) and its production reached 5.94 billion m3 (+25.2%). Meanwhile the extraction of petroleum gas increased by 17% and reached 7.4 billion m3.

A total of 1,346,100 tonnes of petrol, including aviation petrol, was produced between January and June 2008, which is 2.2% less than in the same period of 2007. The production of kerosene (including kerosene-type jet fuel) also decreased by 17.2% and made 196,400 tonnes. Meanwhile, diesel fuel production increased by 4.6% and reached 2,260,300 tonnes, and residual fuel oil production increased by 34.9%, reaching 1,602,100 tonnes.

Export and import

According to the Statistics Agency, Kazakhstan exported 25.21 million tonnes of oil and gas condensate from January to June 2008, which is 2.4% less than in the same period of the last year. The value of the oil and gas condensate exports for this period increased by 65.1% and totalled $6,813.6m.

Natural gas exports during the reporting period totalled 7,747.5 million m3 (+27.3%) worth $469.9m (+115.9%). At the same time Kazakhstan exported 1,554,700 tonnes of oil products (-0.6%), totalling $831m (+63.6%).

The oil import totalled 800,000 tonnes (7.9% less than in January-May 2007), making $575.8m (+48.7%). During the same period of time Kazakhstan imported 2,896.9 million m3 of natural gas (-10.7%), totalling $165.9m (+3.8%).

Investments in capital assets

During the first six months capital asset investments totalled 1,510.2 billion tenge (+12.4%). Oil and natural gas extraction as well as related services are still priority industries for investments; they attract 25.3% of the total amount. Nevertheless the oil industry is not currently among the fastest growing industries. It was the production and distribution of electric power, gas and water, which attracted the largest investments (+75.7%) as well as transport and communications (+42.3%).

Kazakhstan joining the WPC

In early July 2008, Kazakhstan became a member of the World Petroleum Council (WPC). According to KazEnergy (an association of the oil, gas and energy enterprises), membership of the WPC allows maximum access to the latest scientific and technologic discoveries, achievements in the world oil and gas industries, as well as current production, technologic and economic information. Moreover, it will increase the influence of the domestic oil industry, bring new contacts in the sphere of international cooperation and create a new step in strengthening the country’s image in the world.

Kazakhstan joined the WPC on 1 July 2008 during the World Petroleum Congress in Madrid. The programme of the Kazakh delegation included meetings between KazEnergy Chairman Timur Kulibayev, Kazakh Vice Minister of Energy and Mineral Resources Bulat Akchulakov and EU Commissioner for Energy Andris Piebalgs and the WPC Director General Dr Pierce Riemer.

Moreover, the EU Commissioner for Energy and the WPC head were invited to Astana to participate in the Third Eurasian Energy Forum.