World Monitor Magazine WM_Energy_ 2019_web | Page 14

DESTINATION KAZAKHSTAN
According
to
the
established
framework, Kazakhstan worked to
modernize three oil refineries in
Atyrau, Pavlodar and Shymkent based
on the state’s program of forced
industrial and innovative development.
Due to this work, in 2019 Kazakhstan
experienced no shortage of gasoline
and diesel fuel for the first time.
Moreover, we are able to export motor
fuel.
Given the modernization of oil
refineries in Kazakhstan, investment
projects are underway to create world-
class petrochemical plants. Among
them, creation of a complex for the
production of aromatic hydrocarbons
(benzene and paraxylene) at the Atyrau
oil refinery, as well as construction of
an integrated gas-chemical complex in
the Atyrau region with the production
of polypropylene and polyethylene.
It seems that the development of
Kazakhstan’s petrochemicals is a
new step in the diversification of our
economy, the introduction of advanced
processing technologies, the creation
of modern engineering and technical
jobs, and future revenues to the state’s
budget. Projects such as the Integrated
Gas Chemical Complex are capable of
becoming a new centre of attraction for
enhancing the country's technological
growth.
Maintaining the balance of
the global oil market
In recent years, the global oil market has
faced a massive expansion of exchange
and geopolitical factors. As a result,
oil prices are subject to high volatility,
which can only be counteracted by
collective efforts.
In this regard, the OPEC + Agreement
has become the most important factor
in the global oil industry. Thanks to
12
world monitor
this new page in the history of the oil
market, the collapse of prices in 2015-
2016 was stopped, opportunities for
smoothing the disparity in supply and
demand were formed, mechanisms of
cooperation (rather than confrontation)
of the largest oil-exporting countries of
the world were created.
Despite the initial skepticism of other
market participants, OPEC + has
successfully reached their first basic
objective to reduce production. So, for
example, according to the results of
January-April 2019, the consolidated
implementation of the OPEC + Agreement
amounted to 120%, i.e. significantly
better than the planned level.
At the same time, the period of
reflection at the end of 2018 on a new
agreement again spurred growth in the
volumes of commercial reserves of oil
and oil products in the OECD. But this
is the second parameter chosen by the
parties in the agreement to monitor
the global market. Meanwhile, due to
the OPEC + Agreement, signed at the
end of 2016, the level of these reserves
last year fell by more than 240 million
barrels. Given the relevance of the
stock indicator in exchange sentiment,
it seems that it is necessary to again
achieve the trajectory of decline in this
indicator. Such a result is possible with
the extension of the asgreement for the
second half of 2019.
It is important that Kazakhstan is
elected to the Monitoring Committee
in order to be one of the significant
participants in the OPEC agreement,
consistently fulfilling its obligations.
This demonstrates that the role of
Kazakhstan in the global market is
growing.
These are only briefly some trends of
the world market and indicators of the
Kazakhstan oil and gas sector, which
is developing in accordance with key
global trends. New sectoral challenges
are on the agenda: intensification of
geological exploration, new phases of
development for TCO, Karachaganak and
Kashagan megaprojects, development
of a technical and technological base to
increase oil recovery in mature fields,
formation of a petrochemical complex,
etc.
At the same time, I would also like to focus
on the image of the oil and gas industry,
which is gaining an ever-more innovative
image in the world. Unfortunately, there
is a philistine opinion about the purely
raw nature of our industry. In addition,
there are stereotypes of large-scale
confrontation between traditional and
renewable energy.
It seems that in Kazakhstan it is
necessary to widely promote the high-
tech and innovative nature of how the
oil and gas sector functions and its
progress is a priority for most modern
industrial companies.
Now the oil and gas industry is an
essential element of support for global
and national economic growth, it is
a generator of technical discoveries.
All modern processes of exploration,
production, transportation and processing
are accompanied by large-scale research
work, using advanced approaches from
other economic sectors. These are
space technologies, achievements of
metallurgy, mechanical engineering and
robotics and computing power. Moreover,
often it is energy that serves as a catalyst
for a breakthrough in technological
systems. Setting such guidelines for
itself, the oil and gas industry has
additional growth potential. Indeed, oil
has been the most important resource
for mankind, it is and will remain for a
long time to come.