Kazakhstan has the Caspian Sea region's largest recoverable crude oil reserves, and, according to the 2008 BP Statistical Energy Survey, had proved oil reserves of 39.828 billion barrels at the end of 2007 or 3.21 % of the world's reserves. According to the 2008 BP Statistical Energy Survey, Kazakhstan produced an average of 1490.3 thousand barrels of crude oil per day in 2007 and consumed an average of 218.53 thousand barrels of oil a day.
Kazakhstan sits near the northeast portion of the Caspian Sea and claims most of the Sea's biggest known oil fields. The Ministry of oil and gas, the Ministry of coal and power and the Ministry of geology have all been absorbed into the now operating Ministry of Energy, Industry and Trade.
KazMunaiGaz (formerly Kazakhoil) is the major player in the country's oil sector. Kazakhoil was set up in March 1997 following abolishment of the Munaigas state - owned company and its 34 subsidiaries responsible, until then, both for oil and gas. The functions of KazMunaiGaz are implemented either directly or through its participation to other companies. In most of those companies, 18 in number, KazMunaiGaz is the major shareholder with employees and/or private investors holding minority stakes.
The Tengiz field is located in the swamplands along the northeast shores of the Caspian Sea and is the largest source of oil production in the country. Existing production from this field is expected to double in the next decade. The Kashagan field, the largest oil field outside the Middle East and the fifth largest in the world (in terms of reserves), is located off the northern shore of the Caspian Sea, near the city of Atyrau. It is expected that this field will add an additional 1 million bbl/d in the next decade.
Kaztransoil is the product of two major transportation associations brought together, again during the 1997 sector restructuring. Kaztransoil, thus controls about 6300 kms of pipelines for crude oil and another 1100 kms for oil products. Its assets also include oil storage facilities, pumping stations, collection points, rail loading stations and loading piers for Caspian vessels.
According to the 2008 BP Statistical Energy Survey, Kazakhstan had 2007 proved natural gas reserves of 1.9 trillion cubic metres. The country had 2007 natural gas production of 27.25 billion cubic metres and consumption of 19.77 billion cubic metres, making it a net gas exporter.
