Baku's largest industry is petroleum, and its petroleum exports make it a large contributor to Azerbaijan's balance of payments. The existence of petroleum has been known since the 8th century. In the 10th century, the Arabian traveler, Marudee, reported that both white and black oil were being extracted naturally from Baku. By the 15th century, oil for lamps was obtained from hand-dug surface wells. Commercial exploitation began in 1872, and by the beginning of the 20th century the Baku oil fields were the largest in the world. Towards the end of the 20th century much of the onshore petroleum had been exhausted, and drilling had extended into the sea offshore. By the end of the 19th century skilled workers and specialists flocked to Baku. By 1900 the city had more than 3,000 oil wells, of which 2,000 were producing oil at industrial levels. Baku ranked as one of the largest centres for the production of oil industry equipment before World War II. The World War II Battle of Stalingrad was fought to determine who would have control of the Baku oil fields. Fifty years before the battle, Baku produced half of the world's oil supply.
Currently the oil economy of Baku is undergoing a resurgence, with the development of the massive Azeri-Chirag-Guneshli field (Shallow water Gunashli by SOCAR, deeper areas by a consortium led by BP), development of the Shah Deniz gas field, the expansion of the Sangachal Terminal and the construction of the BTC Pipeline.
The Baku Stock Exchange is Azerbaijan's largest stock exchange, and largest in the Caucasian region by market capitalization. A relatively large number of transnational companies are headquartered in Baku. One of the more prominent institutions headquartered in Baku is the International Bank of Azerbaijan, which is run by Dr. Jahangir Hajiyev and employs over 1,000 people. International banks with branches in Baku include HSBC, Société Générale and Credit Suisse.
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Famous quotes containing the word economy:
“The counting-room maxims liberally expounded are laws of the Universe. The merchants economy is a coarse symbol of the souls economy. It is, to spend for power, and not for pleasure.”
—Ralph Waldo Emerson (18031882)
“War. Fighting. Men ... every man in the whole realm is in the army.... Every man in uniform ... An economy entirely geared to war ... but there is not much war ... hardly any fighting ... yet every man a soldier from birth till death ... Men ... all men for fighting ... but no war, no wars to fight ... what is it, what does it mean?”
—Doris Lessing (b. 1919)
“I favor the policy of economy, not because I wish to save money, but because I wish to save people. The men and women of this country who toil are the ones who bear the cost of the Government. Every dollar that we carelessly waste means that their life will be so much the more meager. Every dollar that we prudently save means that their life will be so much the more abundant. Economy is idealism in its most practical terms.”
—Calvin Coolidge (18721933)