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7.1.  Oil question.

Chechnya has long been a leader in the consumption of subsidized federal money. For this reason, and because most of the active separation of the hearth, this republic should be a more detailed study on the possibility of independent financial security. This applies, above all, oil and gas industry of the country.

Chechnya is one of the oldest oil producing regions in Russia. Commercial oil production began here in 1893 (second place in Russia after the Baku crafts). Oilfields owned by private capital, both foreign and Russian, including a few large Chechen industrialists (Tapa Chermoev). After the revolution and civil war in Grozny oil industry has been restored very quickly, and in 1924 began the reconstruction and construction of new plants. By 1940, the Chechen-Ingush Republic was no longer just extracted but crude oil.
During the period of Soviet industrialization in Chechnya has created new industries: machinery, electric power, gas, chemical, timber and wood.

For more than a century of mining was recovered about 420 million tons in 60 years of the twentieth century. Production began to increase in 1971 there were 21.3 million tons, or more than 7% of general Soviet production. In the 70 years the level of production decreased by 3 times in the 80's and early 90's production has stabilized at 4-5 million tons per year. In 1991, mining was carried out by 33 enterprises, and in the amount of processing 19 million tons were carried out by 18 enterprises. In the oil sector employed about 200 thousand people. Or nearly 50% of the economically active population. The Republic produces 6% of the country's gasoline and 90% of aviation oils. In 1993, the volume of primary processing was reduced to 6.2 million tons, while production of aviation oils has ceased. During an emergency event production continued to fall.

Today, the majority of deposits are in the process of natural depletion and increasing water content, which reaches nearly 80%. The degree of exploration of oil is about 80%. Large structures are virtually all identified, but there are the prospects of opening deposit at deeper levels (6500 - 8000 m. of subsalt Jurassic).

Prior to 1991 were operated 2,000 km of main pipelines, which pumped 58 million tons of oil to the Azov and Black Sea ports. On the territory of Chechnya held a Trunk line of Makhachkala - Grozny - Tikhoretsk. In connection with the fighting oil and gas industry suffered significant losses. Large stores of oil, refineries, water networks and water intakes are destroyed. The profitability of the existing transportation system in the near future has no doubt. In 2005 had already produced 2.2 million tons of oil in the same year, the Russian president supported the leadership of the Chechen Republic to send all the money from the sale of crude oil to restore the republic's economy.
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