EVALUATION OF PRODUCTION POTENTIAL OF OIL ENGINEERING ENTERPRISES IN AZERBAIJAN

The article assesses the production potential of petroleum engineering enterprises. Firstly, it commences with a consideration methods for assessing the production potential. Then, in order to assess the production potential of the oil machine-building enterprises in Azerbaijan, the article evaluates the main factors — capital and labor in the production of products in the country's industrial sectors, based on the Cobb-Douglas function. Such an assessment will make it possible to compare the level of use of capital and labor in the oil engineering enterprises with the general situation in the industrial sector at subsequent stages. On the other hand, since the basis of the production process is capital and labor, the level of utilization of the production potential may vary depending on their share in the output. Regression statistics between the generated value added in the industrial sector, the logarithm of wage costs and the logarithm of the volume of fixed production assets or depreciation of fixed assets was calculated. The article calculated the feasibility of researching the manufacturing industry sector separately from the extractive sector in order to determine the share of capital and labor generated in the industrial sector in the country. The article calculated the feasibility of researching the manufacturing industry sector separately from the extractive sector, in order to determine the share of capital and labor, generated by value-added in the industrial sector of country. The article also explores information on the oil machine-building enterprises of Azerbaijan, using the example of AZNEFTKIMYAMASH, OJSC. The instability of the total revenue of this enterprise over the past 6 years is reflected in changes in production, gross profit and net profit. The study of such indicators of the production potential of AZNEFTKIMYAMASH, of the value of long-term and short-term assets at oil engineering enterprises, using the method of «resource approach» by studying the data: the cost of basic production assets, labor resources, energy resources and information elements, all this indicates the fact that the production potential of the enterprise is not fully utilized.