The Role of Petroleum in Kazakhstan Economy

The oil industry of Kazakhstan is one of the main elements of economic security and independence of the country. After the collapse of the Soviet Socialist Republics, in the transition to a market economy in Kazakhstan, the country's oil industry had a priority in the economic development. The energy sector of Kazakhstan has undergone extensive transformation since independence due to market liberalization and industry regulation in the country. In view of the positive situation in the world oil markets and large oil reserves in the country, the oil sector of Kazakhstan has become the most promising sector of its economic and industrial development. Thus, changes in the oil market, especially fluctuations in oil prices, strongly affect the economic development of the country. In this article, we will try to assess the role of oil in the economy of Kazakhstan, analyzing the impact of changing oil prices on the significant macroeconomic indicators in the period between 1991 and 2016. Some measures are proposed to reduce the negative consequences of fluctuations in world oil prices for the Kazakh economy.