KAZAKHSTAN ■ 91
resources. These include 90 percent of the former Soviet Union’s chrome,
almost half of its lead, copper, and zinc; and large deposits of manganese,
tungsten, gold, silver, copper, and molybdenum. Kazakhstan also has large
coal deposits. It was the Soviet Union’s third-largest coal producer, trail-
ing only Russia and the Ukraine, and today is the largest exporter of coal
to the other former Soviet republics. Coal currently produces almost 45
percent of Kazakhstan’s energy, as opposed to about 25 percent each by
oil and natural gas. Kazakhstan also has large deposits of iron and the
second-largest gold reserves in the world. Only about 12 percent of Ka-
zakhstan is arable, but the country still has almost 100 million acres of
farmland, most of which is used for growing wheat, and even vaster pas-
tures for grazing livestock, mainly cattle and sheep. Kazakhstan also pro-
duces cotton and a variety of fruits and vegetables.
These plentiful resources all take second place to oil and natural gas,
the two energy sources upon which the industrialized world increasingly
depends. Kazakhstan currently has more than 70 trillion cubic feet of
proven natural gas reserves, placing it among the world’s top 20 poten-
tial suppliers of that clean-burning energy source. More important by far
are Kazakhstan’s oil reserves. Proven reserves currently are estimated by
most experts to be about 17.6 billion barrels. However, Kazakhstan has
many potentially oil-rich regions that have not yet been explored, and
many experts believe the current figure could easily triple, enough to
make Kazakhstan a leading oil producer and exporter. As the U.S. gov-
ernment’s Energy Information Administration reported in July 2002,
“Kazakhstan’s possible hydrocarbon reserves, both onshore and offshore,
dwarf its proven reserves, with estimated possible reserves—mostly in
the Kazakh sector of the Caspian Sea—of between 30 billion and 50 bil-
lion barrels.” That helps explain why foreign companies invested about
$13 billion in Kazakhstan’s oil and natural gas industries between 1991
and 2001. During that period, despite severe economic problems and
general economic decline, Kazakhstan’s oil production jumped from
530,000 to 810,000 barrels per day, and earnings from oil sales in 2000
topped $5 billion. Estimated output for 2002 was more than 900,000 bar-
rels per day, while projections for 2015 were as high as 2.5 million bar-
rels per day.
Most of the new production is expected to come from three gigantic
fields. Two of them—Tengiz, just inland from the northern Caspian Sea
NIT-CentAsianReps -blues 11/18/08 9:58 AM Page 91