ROLE OIL AND GAS INDUSTRY IN AZERBAIJAN ECONOMY

Abstract

The oil and gas industry is one of the traditional industries of the Republic of Azerbaijan. Contact with oil in Azerbaijan dates back to ancient times, and there are facts that there was a map of oil wells on the Absheron Peninsula in 1729. The industrial exploitation of oil begins with the drilling of the first mechanized oil well in Azerbaijan (1872) and putting it into operation. At the beginning of the 19th century, that is, in 1901, 49% of the oil produced in the world belonged to Azerbaijan, 39% to the United States of America (USA), 4% to Russia and 8% to other countries. Azerbaijani oil has played an important role in the development of the economy of both the former union and the current independent country. It is enough to say that in 1941, 23.41 million tons of oil were produced in Azerbaijan, and its great role in the victorious end of the Second World War was undeniable. Even after the restoration of our independence, the oil and gas industry has been very important in the formation and development of the economy of Azerbaijan. The aim is to determine the role of the oil and gas industry in the formation and development of the economy of Azerbaijan, the impact of the implementation of concluded contracts on the country’s economy. Methodology-methods of grouping, systematization, mathematical and statistical modeling were used. The results of the study-the peculiarities of contracts concluded in the oil and gas industry, the study of the impact of their results on the socio-economic development of the economy of the republic, the issues of ensuring the development of the non-oil sector using oil revenues.