Kazakshstan Energy Profile 2012

Kazakhstan is very rich in mineral resources. A variety of metals, including copper, manganese, lead, and chromium, are mined in the east. Coal is produced mainly near Qaraghandy and Ekibastuz. In the west are major oil and natural gas fields. Much of oil and gas is carried across the Russian region to the Black Sea by the pipelines. Especially important is the Tengiz Field, southeast of Atyrau, on the Caspian coast. Other minerals produced include bauxite, borax, silver, tin, tungsten, uranium, copper, zinc, iron ore, lead, nickel, and gold.

Full development of its major oilfields could make Kazakhstan one of the world's top 5 oil producers within the next decade. With production of 1.54 million barrels per day (bbl/d) in 2009, Kazakhstan is already a major producer, and continued development of its giant Tengiz, Karachaganak, and Kashagan fields is expected to at least double its current production by 2019. Kazakhstan's sector of the Caspian Sea is believed to hold several other major oil and natural gas deposits as yet unexploited.

Steadily rising natural gas production is transforming Kazakhstan from a net gas importer to a net exporter. Natural gas development has lagged behind oil due to the lack of domestic gas pipeline infrastructure linking the western producing region with the eastern industrial region as well as insufficiency in export pipelines. However, the Kazakhstan-China gas pipeline will enable the transport of gas to Kazakhstan's industrial region as well as increased gas exports when it comes online in 2014.

The lack of access to a seaport makes the country dependent mainly on pipelines to transport its hydrocarbons to world markets. It is also a transit state for pipeline exports from Turkmenistan and Uzbekistan. Neighbors China and Russia are key economic partners, providing sources of export demand and government project financing.

Kazakhstan has the second largest oil reserves as well as the second largest oil production among the former Soviet republics after Russia . The country also has large reserves of natural gas and production of both oil and gas is steadily increasing.