DEVELOPMENT OF KAZAKHSTAN'S OIL AND GAS SECTOR: THE EXPERIENCE OF STATE REGULATION IN THE USA AND THE UAE

Abstract

The relevance of studying the effectiveness of the current state regulation policy in Kazakhstan’s oil and gas sector is determined by the critical role this industry plays in the national economy. The sector constitutes a significant share of Kazakhstan’s Gross Domestic Product (GDP), generates substantial revenues for the state budget, and serves as a primary source of foreign currency inflows. Despite its economic importance, the existing regulatory framework faces several challenges that require thorough analysis and continuous improvement. These challenges arise from both internal factors and external pressures, including fluctuations in global markets, stricter environmental regulations, and the need for economic diversification. Given the increasing global economic instability and growing focus on environmental issues, Kazakhstan must enhance the efficiency of its oil and gas sector regulation by incorporating international best practices. This study aims to conduct a comprehensive assessment of the current state regulation of Kazakhstan’s oil and gas industry and develop recommendations for its optimization, drawing on foreign experience. The research focuses on identifying existing challenges and proposing solutions to improve regulatory effectiveness, ensuring the sustainable development of the sector and its contribution to the national economy in response to emerging risks and opportunities. The practical significance of this study lies in determining the key factors influencing the development of Kazakhstan’s oil and gas industry. The analysis of oil and gas production, infrastructure conditions, and environmental risks enables decision-making at both governmental and business levels. These findings support the development of policies that attract investment and foster international cooperation, ultimately enhancing the investment climate and strengthening the country’s economic competitiveness. Additionally, the research highlights the economy’s dependence on oil and gas prices, its vulnerability to external market fluctuations, and the urgent need for infrastructure modernization. The adoption of advanced technologies and increased investment will contribute to improving the efficiency of hydrocarbon extraction and processing.