Tue Nov 05 09:38:49 UTC 2024: ## Azerbaijan: A Petrostate Poised to Become Europe’s Gas Supplier
**Baku, Azerbaijan** – Azerbaijan, the host of the upcoming United Nations COP29 climate summit, is a nation rich in oil and gas, its history intricately linked to these resources. While the country is a major oil producer, it is increasingly turning its attention to natural gas as a transition fuel and a potential route to becoming a key energy supplier to Europe.
The country’s name, derived from the Persian word for “sacred fire,” reflects its ancient connection to oil and gas. Zoroastrian temples in Azerbaijan were fueled by naturally occurring gas and oil, a phenomenon documented by Marco Polo in the 13th century.
Azerbaijan has been a cradle of modern oil extraction, with a well drilled near Baku in 1846, predating US drilling efforts. The Nobel brothers, known for the Nobel Prizes, invested heavily in Azerbaijani oil in the late 19th century, establishing Branobel, the world’s largest oil company at the time. By 1900, more than half of global oil production originated from the Absheron peninsula where Baku is situated.
Today, Azerbaijan, independent since 1991, derives a significant portion of its wealth from oil and gas, with hydrocarbons accounting for 90 percent of its exports. While oil production has been declining since 2010, natural gas production is booming. The country is among the world’s top 20 oil exporters and the 12th largest gas exporter. The Azeri-Chirag-Gunashli (ACG) oilfield complex, discovered in the 1970s, remains the country’s main source of oil, while the Shah Deniz gas field, discovered in 1999, accounts for the majority of its gas production.
Azerbaijan sees itself as a key player in Europe’s energy transition, seeking to capitalize on the decline in Russian gas exports following the Ukraine war. The country is investing in the Southern Gas Corridor, a network of pipelines connecting Azerbaijan to Italy, and aims to increase its natural gas production by a third in the next decade.
As Azerbaijan prepares to host the COP29 climate summit, its status as a petrostate with a rich energy history and ambitious plans for the future will be a point of focus. While the country is heavily reliant on fossil fuels, its commitment to developing its natural gas resources as a transition fuel and potential solution to Europe’s energy needs presents a unique and complex situation within the global climate change discourse.
First Piper 