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:
“Unaware of the absurdity of it, we introduce our own petty household rules into the economy of the universe for which the life of generations, peoples, of entire planets, has no importance in relation to the general development.”
—Alexander Herzen (18121870)
“Even the poor student studies and is taught only political economy, while that economy of living which is synonymous with philosophy is not even sincerely professed in our colleges. The consequence is, that while he is reading Adam Smith, Ricardo, and Say, he runs his father in debt irretrievably.”
—Henry David Thoreau (18171862)
“It enhances our sense of the grand security and serenity of nature to observe the still undisturbed economy and content of the fishes of this century, their happiness a regular fruit of the summer.”
—Henry David Thoreau (18171862)