Azerbaijan: COP29 Host and Its Historical Ties to Oil and Gas
In 2024, Azerbaijan is set to host the COP29 climate summit. Positioned between Russia and Iran, Azerbaijan is steeped in a unique mix of ancient history and modern hydrocarbon wealth. This makes the country’s role as the COP29 host particularly noteworthy. While Azerbaijan has historical and economic ties to oil and gas, the nation also recognizes the need to balance its environmental impact with its energy-driven economy.
The Roots of “Azerbaijan” and its Ancient Oil Connection
Azerbaijan’s name traces back to the Persian word azer, meaning “sacred fire.” The region was historically known for its natural flames, which were often fueled by gas or crude oil seeping from the earth. Temples dedicated to Zoroastrianism, an ancient Persian religion, were built around these “eternal fires,” adding a spiritual dimension to Azerbaijan’s deep-rooted connection to hydrocarbons.
The Birthplace of Modern Oil Extraction
Long before the United States entered the oil industry, Azerbaijan was already pioneering modern oil extraction. In 1846, Azerbaijan drilled its first oil well near Baku. This early oil production rapidly expanded, drawing attention and investment from major figures like Robert and Ludvig Nobel, who helped establish the world's first major oil company, Branobel.
Azerbaijan's Oil and Gas Economy Today
Since gaining independence from the Soviet Union in 1991, Azerbaijan has maintained a robust oil and gas industry. Hydrocarbons constitute over 90% of its exports and make up a significant portion of the country’s GDP. Azerbaijan is a major global player in the oil and gas markets, exporting over 32 million tonnes of crude oil and 35 billion cubic meters of gas annually. Its main oil source, the Azeri-Chirag-Gunashli (ACG) oilfield complex in the Caspian Sea, accounts for over half of Azerbaijan’s oil production, managed by BP and the state oil company SOCAR.
Azerbaijan’s Growing Emphasis on Natural Gas
While oil production in Azerbaijan has slightly declined since 2010, natural gas production is expanding rapidly. Azerbaijan’s biggest natural gas site, the Shah Deniz field, discovered in 1999, has positioned the country as a leading exporter of natural gas. Azerbaijan aims to increase its gas production by 30% in the coming decade, hoping to supply Europe through the Southern Gas Corridor. This pipeline network connects Azerbaijan’s gas reserves to Europe, diversifying Europe’s energy sources.
Azerbaijan as the COP29 Host: Balancing Hydrocarbons and Climate Action
As COP29 host, Azerbaijan faces unique challenges and responsibilities. While hydrocarbons are integral to Azerbaijan’s economy, its role as the summit host brings pressure to support global climate goals. Azerbaijan is exploring “transitional energy” strategies, arguing for natural gas as a cleaner alternative to coal and oil.
Conclusion
Azerbaijan’s hosting of COP29 underlines the global need for a balanced approach to climate action that recognizes economic realities while advancing sustainable energy goals. As a hydrocarbon-rich nation, Azerbaijan’s efforts toward environmental stewardship could influence how other petro-states approach their own energy transitions.
Refrence From: www.ndtv.com