Sakhalin is a classic "resource economy" relying on oil and gas exports, coal mining, forestry, and fishing. Limited quantities of rye, wheat, oats, barley and vegetables are grown, although the growing season averages less than 100 days.
Following the collapse of the Soviet Union and economic liberalization, Sakhalin has experienced an oil boom with extensive petroleum exploration and mining by most large oil Multinational corporations. The oil and natural gas reserves contain an estimated 14 billion barrels (2.2 km³) of oil and 96 trillion cubic feet (2,700 km³) of gas and are being developed under production-sharing agreement contracts involving international oil companies like ExxonMobil and Shell.
In 1996, two large consortiums signed contracts to explore for oil and gas off the northeast coast of the island,
Sakhalin-I and
Sakhalin-II.