Kazakh oil extraction increases

There is criticism of the fact that Kazakhstan is still unable to refine oil and exports only crude oil. Kazakhstan is exporting more and more oil, but this may not compensate the country for the lack of a refinery.

Since 1992 oil extraction in Kazakhstan has increased from 25 million tonnes to 76 million tonnes a year. Of course this facilitates huge economic development of the country. It plans to increase it to 150 milllion tonnes by 2015. 50% of this will be from the Kashagan oil field, the biggest in the Caspian Sea.

Much depends on the world oil price. At the beginning of 2009 1 barrel of oil cost 35-45 USD but by the end of the year it approached USD 80. Analysts think that if the cost of a barrel oil is no less than USD 75 this will guarantee the sustainability of oil exporting and prevent further destabilisation of the market. For Kazakhstan this price is optimal if it wishes to stabilise its post-crisis situation.