While outside estimates place Turkmenistanís proven natural gas reserves among those of the top 15 of gas-producing countries, Turkmenistanís claims place its reserves at far higher than outside sources consider credible. In January 2005 Turkmenistan claimed its current recoverable gas resources to be as much as 20.42 trillion cubic meters (tcm), but controversy surrounding the as yet unreleased certified audit results of Turkmenistanís single largest field, Dovletabad, casts serious doubts on the verifiability of Turkmenistanís claims for its total reserves.

Despite its non-transparency about gas reserves, Turkmenistan remains the second largest gas producer in the former Soviet Union after Gazprom. Production figures have been consistently climbing since 1998 when Turkmenistan was virtually cut off from all outside markets by Russia. Turkmenistanís 2005 output was an estimated 63 billion cubic meters (bcm); the bulk of which (45.2 bcm) went to Ukraine, Russia and Iran.

Turkmenistan relies exclusively on Russia for its export routes as most of the pipeline network is laid on Russian territory. Russian control of the northward pipeline is a source of frequent gas price disputes with Russia. Turkmenistan managed to hike up its previous average price of $44 per 1,000 cubic meters at the end of 2005. It currently holds a contract with Gazprom to supply 30 bcm in 2006 at $65 per 1,000 cubic meters. Ukraine countered with a deal to supply 40 bcm at $50 per 1,000 cubic meters (cm) in the first half of 2006 and $60 per 1,000 cubic meters in the second half of 2006. It is unclear if Turkmenistan can fulfill these obligations. Turkmenistan also exports to Iran about 8 bcm a year.

Turkmenistanís 2005 oil production dropped to 9.5 million tons (about 1%) over that of 2004. Among other major exports are liquefied natural gas (LNG) and polypropylene.

With an authoritarian post-communist regime in power, Turkmenistan has taken a cautious approach to economic reform, hoping to use gas and cotton sales to sustain inefficiencies in its economy. Privatization goals remain limited, with a substantial private share only in food processing, consumer trade and services. Despite the increased inflow of gas revenue, prospects in the near future are uncertain; widespread internal poverty, the burden of foreign debt, and the unwillingness of the government to adopt market-oriented reforms continue to offset gas-related gains. Turkmenistan's economic statistics are closely held secrets, and published GDP and other figures are subject to wide margins of error. Turkmenistan's unrealistic goal of "self-sufficiency" also artificially sustains the cultivation of inefficient crops, such as wheat and cotton. The 2005 UN Development Program (UNDP) Human Development Report places Turkmenistan in the category of "medium human development" although the unemployment rate may be as high as 70%. Turkmenistan has cooperated with the international community in transporting humanitarian aid to Afghanistan.