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EX-PRESIDENT: AZERBAIJANI ECONOMY IS OIL-DEPENDENT AND THIS IS DANGEROUS WITH CURRENT DECLINE OF OIL PRICES
14:07 18/03/2015 >> ECONOMY
For the period of January-February the production of petroleum products
declined by 8% in Azerbaijan as compared to 1 March of the previous
year, Azerbaijani news outlet Haqqin.az reports.
Citing the information provided by the State Statistics Committee of
Azerbaijan, the outlet notes that mazut production saw the biggest
decline - 99.5% (up to 200 tons), the production of lubricants dropped
by 65.8% (2.6 thousand tons), bitumen - by 53,4% (19.7 thousand tons)
and kerosene - by 7.9% (106.6 thousand tons). January-February period
saw a rise in petrol production for 0.7% (199.4 thousand tons),
straight-run gasoline for 36.4% (20.6 thousand tons), and diesel -
for 18.3% (480.9 thousand tons).
According to the article, the whole production is carried out in
Heydar Aliyev oil refinery. Azerneftyaq refinery merged with this
oil refinery since 1 January, 2015.
Haqqin.az also reports that many analysts predict a new decline in oil
prices to 40% this week. The experts of the Singaporean United Overseas
Bank claim that the drop of the prices of oil is conditioned by the
"investors concern that the 'black gold' resources in the US are at
record levels and go on rising." According to the data of Goldman
Sachs experts, oil extraction will increase for 230 thousand barrels
per day in the US in the fourth quarter of 2015.
Apparently, the world is about to face the biggest drop of prices
of oil since the 1980's. It will certainly hit all the oil-producing
countries, including Azerbaijan, the article reads.
In an interview to Haqqin.az ex-president of Azerbaijan Ayaz Mutalibov
called on the government of the country to get rid of "oil needle"
as soon as possible.
"Yes, at the beginning of the 1990s we had to bet on oil as it first
of all presupposed geopolitical aspect as well - to take its place in
the international community. But the parallel development of non-oil
sector was to take place in the internal politics. That is, we need
to give freedom to the citizens engaged in small and medium-sized
businesses. For example, 40% of the budget of many European countries
is made up of the revenues from the SMBs. Although much was done in
that direction in Azerbaijan during the recent years, non-oil sector
has not become an important source of budget incomes. Oil dependence
is remaining enormous," Mutalibov noted adding that the monopolies
devour small enterprises, preventing the development of the SMBs,
which contradicts the philosophy of market economics. You cannot
rely on oil. That is why the government must now immediately take up
effective measures to save Azerbaijani economy from oil dependence.
There are also reports that the Cabinet of Ministers of Azerbaijan
introduced changes into the Register of Natural Monopolies regarding
the abbreviation of the biggest natural monopoly in Azerbaijan -
State Oil Company of Azerbaijan Republic (ARDNS). According to the
changes, the abbreviation ARDNS was replaced with the abbreviation
SOCAR, news outlet Oxu.az reports.
http://www.panorama.am/en/economy/2015/03/18/azerbaijan-oil/
14:07 18/03/2015 >> ECONOMY
For the period of January-February the production of petroleum products
declined by 8% in Azerbaijan as compared to 1 March of the previous
year, Azerbaijani news outlet Haqqin.az reports.
Citing the information provided by the State Statistics Committee of
Azerbaijan, the outlet notes that mazut production saw the biggest
decline - 99.5% (up to 200 tons), the production of lubricants dropped
by 65.8% (2.6 thousand tons), bitumen - by 53,4% (19.7 thousand tons)
and kerosene - by 7.9% (106.6 thousand tons). January-February period
saw a rise in petrol production for 0.7% (199.4 thousand tons),
straight-run gasoline for 36.4% (20.6 thousand tons), and diesel -
for 18.3% (480.9 thousand tons).
According to the article, the whole production is carried out in
Heydar Aliyev oil refinery. Azerneftyaq refinery merged with this
oil refinery since 1 January, 2015.
Haqqin.az also reports that many analysts predict a new decline in oil
prices to 40% this week. The experts of the Singaporean United Overseas
Bank claim that the drop of the prices of oil is conditioned by the
"investors concern that the 'black gold' resources in the US are at
record levels and go on rising." According to the data of Goldman
Sachs experts, oil extraction will increase for 230 thousand barrels
per day in the US in the fourth quarter of 2015.
Apparently, the world is about to face the biggest drop of prices
of oil since the 1980's. It will certainly hit all the oil-producing
countries, including Azerbaijan, the article reads.
In an interview to Haqqin.az ex-president of Azerbaijan Ayaz Mutalibov
called on the government of the country to get rid of "oil needle"
as soon as possible.
"Yes, at the beginning of the 1990s we had to bet on oil as it first
of all presupposed geopolitical aspect as well - to take its place in
the international community. But the parallel development of non-oil
sector was to take place in the internal politics. That is, we need
to give freedom to the citizens engaged in small and medium-sized
businesses. For example, 40% of the budget of many European countries
is made up of the revenues from the SMBs. Although much was done in
that direction in Azerbaijan during the recent years, non-oil sector
has not become an important source of budget incomes. Oil dependence
is remaining enormous," Mutalibov noted adding that the monopolies
devour small enterprises, preventing the development of the SMBs,
which contradicts the philosophy of market economics. You cannot
rely on oil. That is why the government must now immediately take up
effective measures to save Azerbaijani economy from oil dependence.
There are also reports that the Cabinet of Ministers of Azerbaijan
introduced changes into the Register of Natural Monopolies regarding
the abbreviation of the biggest natural monopoly in Azerbaijan -
State Oil Company of Azerbaijan Republic (ARDNS). According to the
changes, the abbreviation ARDNS was replaced with the abbreviation
SOCAR, news outlet Oxu.az reports.
http://www.panorama.am/en/economy/2015/03/18/azerbaijan-oil/