Energy Sector of Kazakhstan: Current State and Prospects of Development

Abstract

Fuel and energy complex largely determines the structure of the economy of Kazakhstan and is now the most influential factor of socio-economic development and integration into the global economy. The present stage of development requires a strategic view of the transformation processes in Kazakhstan and assessment of the passed and future steps. The Strategy of Industrial and Innovation Development of Kazakhstan for 2003- 2015 provides for a sustainable economy development through the diversification of its branches, which include fuel and energy complex. The need for diversification is due to the increase of energy sector efficiency. To avoid a crisis, it is necessary to reform legislation with the view of changing the policy for energy resources use. It is very important for the country to develop the existing potential in the field of alternative energy, considering the world trend and to prepare a framework for the transition to renewable energy sources. In this case, oil production and refining remains the determinant industries in the world, but in the future, especially with the development of new technologies, the role of renewable energy sources will increase significantly. Kazakhstan has a great opportunity to reach a new level of economic development, if guided by the interests of the international community in this area and to establish programs aimed at strengthening the integration with other countries.