GLOBAL PRACTICE OF DIVERSIFICATION OF THE OIL AND GAS SECTOR OF THE ECONOMY

Abstract

The article considers global trends in the development of the oil and gas sector of the economy. World economic systems, developing due to the availability of large amounts of natural resources, are increasingly specialised in the extraction and export of energy products, which are mainly exported to industry markets in raw form. Countries that supply hydrocarbon commodities to world markets are subject to price volatility and pricing policies, with the result that the economies of oil and gas exporting countries are not always sustainable. Historically, such countries have historically been less able to develop manufacturing sectors that produce value-added goods, while supplementing government budgets with quick revenues from oil and gas exports. These countries have a chance to develop their economies by selling raw materials for a certain period of time, but in the long term they switch to economic diversification to ensure sustainability in the face of uncertainties (lower demand for raw materials, volatility of resource prices, environmental challenges, scientific and technological development, increased use of unconventional energy sources, the impact of the COVID-19 pandemic, etc.). Oil and gas producing and exporting countries have been carrying out reforms for the last two decades in order to ensure strong economic growth through the expansion of industrial sectors of the economy by producing deep processing products with high added value. The purpose of the research is to study the world experience of oil and gas industry diversification development in order to adapt it to the realities of Kazakhstan Methodology - The work uses statistical, monographic, abstract-logical and other methods of research. Originality/value of the study is to consider the experience of foreign countries in the development of diversification of the oil and gas sector of the economy. Results of the study - The main directions of development of diversification of the oil and gas sector of the country's economy are determined.