After the discovery of oil fields, Baku became a special place, where various economic and political interests of international coalitions, industrial clans and leaders were concentrated and clashed. VK begins publishing chapters from the book by Ismail Agakishiyev "History of the Baku Oil Industry and the Second Oil Boom (second half of the 19th century - beginning of the 20thcentury)" The book presents a historical analysis of the emergence and current state of the Azerbaijani oil industry.
In the difficult historical moment of building their statehood, the ex-Soviet republics faced not only economic, but political internal and foreign policy problems. Solutions to them could have stabilized the economy and become the basis of the cooperation with foreign companies. First of all it was necessary to create consensus within the country and come to an agreement with foreign states whose oil companies were interested in the oil reserves of Azerbaijan. The resolution of these issues was complicated by the war in Nagorno-Karabakh. The third Azerbaijani president, Heydar Aliyev, managed to reach a truce on the front and to conclude an international oil contract. The "Contract of the Century" answered the hopes of the Azerbaijani leadership and triggered the economic and political development of the country to overcome the crisis and construction of the state. Out of 15 former Soviet republics only three - Azerbaijan, Russia and Kazakhstan - managed not only to overcome the consequences of the economic collapse, but because of the commodity sector got a real possibility to create a processing and technological industry, to develop services and create a prosperous state.
The overcoming of business monopolies and a significant reduction of corruption will not only allow for the establishment of a national elite but for the growth of wealth of the entire population. The international status of the Azerbaijani Republic has grown since 1991. The oil industry in Baku has again become world-famous, the city entered the association of the oil cities of the world that includes the capitals of some big states. A country that in the early 1990s had to regularly switch off electricity, where natural gas was in shortage, at the moment is shining in the rays of electric light and provides the blue fuel even in the furthest mountain villages. New green areas are replacing the forests cut down during the energy crisis, and work in this direction continues. All the main highways have been renovated and rebuilt. The roads are important not only for economy but for culture as well. In the faraway Qabala district a piano factory was opened and the mountain villages got five-star hotels and children's resorts. If Azerbaijan maintains stability and peace, in 10-15 years it will become an economically-developed country. In our opinion, this will solve many problems, including the Karabakh conflict and the return of the population that left the country in the times of crisis. This process has already started. The Azerbaijani people are decent and grateful. They will always be grateful to Russia, where millions of Azeris found roofs over their heads and work.
The State Oil Fund of the Azerbaijani Republic, created in 1999, started to fulfil its main function, accumulating the oil profits and investing it in social infrastructural projects. This also maintains a balance between the interests of the current and future generations. The capital of the fund reached 40 billion dollars in 2010. And this is not the limit, as it expects a 20 billion dollar profit. Reasonable use is as important as the possibility of getting this income. It is important to create economic sectors that will allow Azerbaijani to find its place in the global economy beyond the oil sector. The oil profits allowed the housing problem of refugees and forced migrants to be solved - the last tent camp was closed in 2007. This money was invested in the construction of schools and kindergartens. Some money was invested in the Baku-Tbilisi-Ceyhan oil pipeline, 25% of which belongs to Azerbaijan. 20 years after the pipeline was launched the country will become its only owner and already now the State Oil Fund of Azerbaijan receives some money from its exploitation.
Along with the US, the EU, Japan and Saudi Arabia, SOCAR cooperates with Russian oil company LUKOIL in the Azerbaijani sector of the Caspian Sea. Current research leads us to the conclusion that this cooperation has been mutually profitable. LUKOIL was the first Russian company to extract oil in the Caspian Sea within the framework of the "Contract of the Century" and continues to develop natural gas in the Shah Deniz field. The work in the Karabakh field had positive results, although its main expectations were not fulfilled. As the work in the Northern and Caspian Sea shows, lack of developed infrastructure increases the expenses of oil extraction. LUKOIL received a priceless experience in oil exploration and extraction and now participates only in contracts where it has the role of operator.
During the second Baku oil boom, SOCAR, from a small structure extracting only 10 million tons of oil, developed into a large vertically-integrated oil corporation known in the entire Caspian region. Together with the world's biggest companies it extracts significant oil and gas resources. Azerbaijan again started exporting hydrocarbons to the world market and for the first time to Western Europe. The country fully covers the internal demand for oil and gas, and still has enough for export. SOCAR broadened its economic activity and invests not only in Azerbaijan, but also in Turkey, Romania and Georgia. Joint Azerbaijani and foreign companies work across the Caspian region in geological exploration.
Azerbaijan managed to create an entire "fleet" of floating drilling platforms that allows it to solve drilling problems not only in the Azerbaijani part of the Caspian. Sea In a short time Azerbaijan managed to enter the world oil market and take a decent place there.
