CBD Fourth National Report - Azerbaijan (English version)

3.2.7. Energy and oil extraction
Country Study on Biodiversity and Fourth National Report
The Republic of Azerbaijan
Reserves of fuel & energetics being one of the most advanced branches of countrywide
industry totalled to 44.1 million tons of fuel equivalent in 2001 that it was less than the figure
of 1990 as 45.6 million tons or 51%, but higher than the figure of 1995 as 4.6 million tons or
12%. 28% of the consumed fuel was spent for production of electric and heat energy.
Production of electric energy totalled to 21.6 billion kilowatt-hour in 2008 and it increased as
1.7% in comparison with 2003. 88.2% of electric energy produced in 2008 is shared by heat
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power stations, 6.8% by water power stations and 0.8% by mobile generators. Heat power
stations cause to high level air pollution because of their functioning with gas and heavy oil
(residual).
There observed a decline in fuel equivalent spent for per kilowatt-hour of electric energy
produced in power stations within the past years. In this period average 300 gram fuel
equivalent was spent for per kilowatt-hour in a year.
Considering electric energy production of 19.1 billion kilowatt-hour in heat power stations
within 2008, then air pollution extent can be imagined.
Oil extraction industry historically played a leading role in industrial complex of the country.
This sector constituting a basis of fuel-energetics material supply determined structure of our
economy and led to creation of industry branches such as oilrefinery, oil-chemistry and
chemistry. At the present, role of this sector increased more.
There established State Oil Company including enterprises on oil refinery and end products
after gaining independency of Azerbaijan. This body was granted authorities necessary for
execution of prospecting and development of oil & gas fields onshore and in Azerbaijan
sector of the Caspian sea in order to provide development of oil-gas complex and to satisfy
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2009