According to the 2008 BP Statistical Energy Survey, Azerbaijan had proved oil reserves of 7 billion barrels at the end of 2007 or 0.56 % of the world's reserves. Azerbaijan produced an average of 867.8 thousand barrels of crude oil per day in 2007, 1.09% of the world total and a change of 31.6 % compared to 2006. As a Caspian littoral state, Azerbaijan is capitalizing upon the sea's sizeable, but as of yet mostly untapped, hydrocarbon resources. According to the 2008 BP Statistical Energy Survey, Azerbaijan consumed an average of 92.63 thousand barrels a day of oil in 2007, which means that a significant percentage of its production is exported. Crude oil and oil product exports make up over 70% of Azerbaijan's total exports, and account for nearly 50% of budget revenues. The country’s largest hydrocarbon structures are located offshore in the Caspian Sea and account for most of the country's current petroleum production. Oil production comes primarily from the Azeri-Chirag-Guneshli (ACG) field which produces about 65 percent of the country’s oil.
The State Oil Company of the Azerbaijan Republic (SOCAR) was established in 1992 with the merger of Azerbaijan's two state oil companies, Azerineft and Azneftkimiya. SOCAR has experienced declining output in recent years, with the majority of Azerbaijan’s oil output (80 percent in 2007) now coming from the Azerbaijani International Oil Consortium (AIOC).
According to the 2008 BP Statistical Energy Survey, Azerbaijan had 2007 proved natural gas reserves of 1.27 trillion cubic metres, 0.72% of the world total, and 2007 natural gas production of 10.29 billion cubic metres.
