Azerbaijani official: Hormuz disruptions expose Europe’s energy vulnerability

Azerbaijani Energy Minister Parviz Shahbazov has underscored Europe’s continued vulnerability to global energy shocks, pointing to the ongoing crisis in the Strait of Hormuz as a key example.

"These days, as we know, many countries in the Middle East are experiencing a very serious crisis – a tragedy of historic proportions. In total, we're talking about approximately 12 million barrels per day – at least – that are not entering the global energy sector," the minister said at a panel session at the Antalya Diplomacy Forum, Caliber.Az reports per local media. 

According to Shahbazov, prior to the escalation, more than 80% of LNG, 87% of oil, and 4% of jet fuel and diesel transiting the Strait of Hormuz were bound for Europe.

"That's why Europe remains extremely vulnerable in terms of oil and gas trade and energy supplies in general," he said.

While Azerbaijan has not experienced the same level of disruption, Shahbazov stressed that the country remains engaged in global coordination efforts, including within the OPEC+ framework.

"However, at the same time, we are a responsible participant in the OPEC+ format, and there we always advocate for finding solutions to various issues, including crises like these," he emphasised.

EU green policy concerns

Additionally, Shahbazov called for expanded international cooperation and sustained investment in energy infrastructure, warning that current efforts may fall short of future demand.

"We invite many countries to cooperate, maintain constant dialogue with our partners, and always think about the future," he said.

Referring specifically to the Southern Gas Corridor, he noted its growing importance for European supply diversification.

"For example, the Southern Gas Corridor, which supplies over 16 billion cubic meters of natural gas annually, has the potential to double these volumes. However, to a certain extent, it has been underinvested in by participants, including due to the European Union's green policies," Shahbazov added.

Azerbaijan–Türkiye partnership

Speaking at the forum, Shahbazov described energy cooperation between Azerbaijan and Türkiye as a long-standing and effective model for ensuring energy security.

"Our cooperation with Türkiye is an excellent example of how friendly and partner countries can contribute to energy security over many years," Shahbazov said.

He highlighted a series of major joint infrastructure projects, including the Baku–Tbilisi–Ceyhan oil pipeline, Baku–Tbilisi–Erzurum gas pipeline, and the Southern Gas Corridor.

The Southern Gas Corridor, stretching approximately 3,500 kilometres, "for the first time in history connected the Caspian Sea through seven countries with the Adriatic Sea – southern Italy," he noted.

"This is the approach to work that ensures the sustainability of the energy sector and best guarantees energy security... This was a plan that was consistently implemented," the minister added.

High oil prices

The minister also pushed back against the perception that rising oil prices automatically benefit producing countries.

"There's a perception, regarding high prices [oil - ed.], that producers derive significant benefits from them, but this isn't entirely true."

He explained that many hydrocarbon-exporting countries are deeply integrated into global financial markets through sovereign wealth funds, making them vulnerable to broader economic downturns.

"That's because, as a rule, oil-producing countries, or hydrocarbon countries in general, have sovereign wealth funds that also invest in global financial markets and various assets. When the stock market falls, we, of course, begin to feel it too – just as we do through our import operations. So, it certainly has an impact," the minister said.

He warned that some major producers may underestimate these risks.

"This is a serious issue, as we could ultimately lose even more than we gain from high oil prices-as I've already said, due to the decline in stock markets. This is precisely why we have always advocated for balanced oil prices, which is important for both producing countries and consumers, as well as for the oil and gas industry as a whole," Shahbazov noted.

By Sabina Mammadli