The thesis points out the essential importance of the fuel and energy complex sector in economic and political life of Azerbaijan in the condition of market relations. In connection with the development of this industry in our country great economic results have been achieved. Raising these economic indicators to such a high level is directly related, first of all, with the increase in oil production in our country based on the participation of foreign oil companies.

The development of oil and gas industry in Azerbaijan in accordance with the level of modern requirements of market relations serves to improve the socio-economic well being of the population and strengthen the defence power in our country and will continue to serve in the future.

The experience of recent years shows that the results of further development of oil and gas industry in our country in a market economy along with the increasing, integration of Azerbaijan into the world economic system the international image of Azerbaijan have also begun to increase. All this gives us the reason to say that the development of modern industry requirements of the combustible energy complex attracts attention to the relevance in economic and social life of Azerbaijan in the condition of market relations. Increasing oil and gas extraction into the fuel and energy complex, the acceleration of oil transportation and refining, giving special importance of increasing gas supplies must be one of the issues that are in the center of attention of the country.

In the condition of market relations the new oil strategy of Azerbaijan, the ownership as an independent country by confirming Azerbaijan’s desire to protect national interests, economic and strategic interests, with its natural resources that has become the major guarantor of the sovereignty of our country. As it’s known the basis of the new oil strategy of Azerbaijan was “Contract of the Century” signed by great leader Heydar Aliyev in 1994.

The contract signed with foreign countries related to the future development of the oil and gas industry in Azerbaijan will further strengthen the independence and sovereignty of our statehood and national security deepening the integration of the economy of the country in the world economy, the expansion  of the investment flow, as well as in connection with all these, it will lead to further increase the power of our country at the international level.

All mentioned gives grounds to say that in the conditions of the market economy rapid development of the oil and gas industry has been ensured in our country. In this regard, the state highly appreciating of the exceptional role of the combustible energy industry in the development of the economy in the country and the goal of expanding of the development in non-oil sector have been set in the paper. From this point of view, the breadth of opportunities in Azerbaijan, first of all in the future creates substantial conditions for the sustainable development of the country towards the effective use of the region productive potential.

Based on all of above mentioned it can be concluded that along with a high assessment by the state of the role of the oil and gas industry in the development of the country growth. It is advisable to pay special attention to the development of the non-oil sector. Along with this, it should be noted that taking into account the extensive opportunities of Azerbaijan in the field of the oil and gas industry, it is necessary to effectively utilize the production, the potential of the regions in the sustainable development dynamics in our country.

Keywords: oil extraction, oil and gas extraction industrial area, investment, export pipeline, oil strategy.