Kazakhstan has been forced to step up oil production to try to survive, but there’s a long way to go before the country can take on the threat posed by the Russian oil industry.
The country’s president, Nursultan Nazarbayev, has been promising the country would produce 30 billion cubic meters of oil a year by 2020.
That’s a far cry from the 50 billion that the country needs.
But, as Bloomberg News points out, Kazakhstan’s president doesn’t have to wait for a breakthrough in technology or economics.
He can just start producing it.
Kazakhstan’s oil reserves are so huge that Nazarayev is not even sure if he can produce the necessary oil at all.
That may be because the country is still relying on a variety of unconventional oil and gas extraction methods, Bloomberg writes.
Nazarayanbev says the country should continue to use conventional oil production, as long as it’s not too costly.
But the government needs to make sure that oil production is more affordable.
Oil is a commodity with a high price, so if prices stay high and people aren’t getting their share of oil revenues, the country will be in trouble.
Kazakhstan needs a new approach to economic development, Nazaraysaysayev told reporters in August.
And the new approach has to be in line with the needs of the population, which is increasing.
“The oil is a very important commodity,” Nazaralyev said at the time.
“It’s very important to the people and the economy of Kazakhstan.”
Kazakhstan’s government, however, has said it needs to cut its reliance on oil in order to reduce unemployment and boost the country’s economy.
And there are signs that its government is already preparing to use more unconventional oil extraction methods.
A study by the World Bank in November found that Kazakhstan’s GDP had contracted by 2.5 percent over the past five years and that inflation has increased by almost half a percentage point.
The government has also proposed a plan to boost the use of unconventional drilling techniques, but it has not yet been fully implemented.
The plan is due to be submitted to the National Assembly on Monday.
It’s unclear whether Nazarbalbayev’s new approach will work or not.
A recent report from the World Economic Forum found that a combination of unconventional extraction methods and subsidies could boost Kazakhstan’s economy by as much as $7 billion a year.
“We have to see whether it will work,” Azarov told reporters after the meeting.
“Because if it doesn’t, it will cause a crisis.”