Azeri Economy, More Dependent on Oil Exports than Ever

Azerbaijan's State Customs Committee reported that during the period January-June 2011, crude oil made up 86.23 percent of Azerbaijan's exports and oil products, 5.57 percent. Compared to January-July 2010, oil exports have climbed by 29.39 percent and oil product exports have increased by 17 percent.

Compared to the same period a year ago, Azerbaijan's oil exports have increased by 29.39 percent and oil product exports have increased by 17 percent, news.az news agency reported. Since 2009 Azeri oil exports have risen by 53.91 percent and oil product exports decreased by 13.41 percent.

The State Customs Committee also noted, "Gas exports from Azerbaijan in January-July 2011 totaled 4.443 billion cubic meters (bcm), according to the metering data. Gas exported under streamlined customs procedures totaled 2.206 bcm worth $405.838 million in the seven months."

The State Oil Company of the Azerbaijani Republic (SOCAR) exports natural gas to Russia, Iran and Georgia, while gas produced at the Shah Deniz field in the Caspian is exported on the Baku-Tbilisi-Erzerum pipeline to Georgia and Turkey. In 2010 SOCAR exported 1.7 bcm of natural gas and a total of 5.1 bcm of Shah Deniz natural gas was exported on the Baku-Tbilisi-Erzerum pipeline to Turkey, while the government forecasts this year that national natural gas production will total 29.136 bcm.

By. Charles Kennedy, Deputy Editor OilPrice.com