World Monitor Magazine WM_Energy_ 2019_web | Page 12

DESTINATION KAZAKHSTAN
in oil production - 58%,
in gas production - 45%,
oil refining -
more than 30%,
investments in Upstream -
more than 40%.
Naturally, market restructuring did not
go unnoticed by major transnational
corporations. Most of the major
companies have taken serious steps to
consolidate their activities, increasing
their assets in all sectors of the industry.
In 1999, the merger of the largest
US companies Exxon and Mobil was
completed. In 2000, a similar deal went
through the French companies Total
and Elf Aquitaine. In 2001, Chevron took
over Texaco. Subsequently, a significant
modernization of Shell was carried out
through the merger of the parent Royal
Dutch Petroleum company and The
Shell Transport and Trading company.
Thus, at the beginning of the 21st
century, the global oil market underwent
a comprehensive transformation, the
result of which was a sharp increase
in the influence of national companies
and the intensification of mergers
and acquisitions among the leading
multinational corporations.
Petrochemical Development
The creation of the National Company
KazMunayGas in 2002 is also in line
with world trends. During its operation,
almost all the basic indicators of a
domestic company have more than
doubled. In general, Kazakhstan takes into
account the most important trends in
structuring the world market and uses
them for its national interests. At the
same time, there is a certain lag in
the formation of the petrochemical
complex. According to industrial-
innovative development, the current
export volumes of basic petrochemicals
are very insignificant. The share of oil
refining and petrochemical production
in the country's GDP remains below 2%.
Gross value added and labor productivity
in petrochemicals also demonstrate
dynamics that are far from desirable.
At the same time, there is currently a
process for the gradual transition from
the primacy of the transport sector in
the application of oil and gas to the
industry.
According to 2018 results, JSC NC
KazMunayGas provides more than a
quarter of the total volume of oil and gas
condensate in Kazakhstan, about one-
sixth of the production of natural and
associated gas in the country, almost
two-thirds of the total transportation of
oil by main pipelines, and about 80 % of
the gas transportation and processing
of Kazakhstani oil. The capacity of the
global chemical market
is now about 4.5 trillion
US dollars, which is
comparable to the GDP of
the third country in the
world – Japan. Meanwhile,
it is expected that this
market will double in size
in the next 15 years.
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Over the past 40 years, the demand for
plastic in the world has grown almost
ten times, significantly ahead of other
large types of industrial products
with high added value. According to
the International Energy Agency, in
the next 30 years, the production
of basic petrochemicals (olefins,
aromatics, etc.) in the Asia-Pacific
region will reach 300 million tons per
year, compared to 160 million tons at
present, in North America – there will
be an increase from 60 to 90 million
tons, in the Middle East – from 40 to
110 million tons.
According to the roadmap for the
development of the petrochemical and
chemical industry in Russia, adopted
in 2019, the expected growth rates of
world production of polyethylene and
polypropylene up to 2025 will exceed the
growth rate of global GDP. So, the average
annual growth rate of polyethylene
production in the world is expected to
reach 4.2%, polypropylene – 4.6%.
As for Kazakhstan, our country is now
forming a technological chain for
the use of energy resources – from
exploration to the production of goods
with highly added value.