Energy shakeup: Azerbaijan’s oil drops, gas takes the spotlight for 2024

Azerbaijan is projected to experience a decline in oil production in 2024, according to data released by the Accounts Chamber.

The nation’s oil output is expected to reach 29.2 million tonnes, marking a 3% reduction compared to 2023, Caliber.Az reports citing local media.

This follows a trend observed earlier, where oil production from January to October 2023 stood at 24.15 million tonnes, reflecting a 3.7% drop from the same period the previous year. By the end of 2023, total oil production was recorded at 30.19 million tonnes, which represented a 7.5% decline from 2022 levels.

Despite the downturn in oil output, Azerbaijan's gas production outlook appears more promising.

The Accounts Chamber forecasts that marketable gas production in 2024 will increase to 37.8 billion cubic metres, a 3.8% rise over 2023. Additionally, this growth momentum is expected to continue into 2025, with projections indicating a further 1.6% increase, pushing marketable gas production to 38.4 billion cubic metres.

This upward trend in gas production has already been reflected in the figures for the first ten months of 2024. During this period, Azerbaijan produced 41.63 billion cubic metres of gas, a 4.7% increase compared to the same timeframe in 2023. Out of this, 31.73 billion cubic metres were classified as marketable gas, marking a 6.8% growth.

In the previous year, 2023, Azerbaijan produced a total of 48.5 billion cubic metres of gas, a 3.8% increase from 2022. Marketable gas production specifically rose by 4.2%, reaching 36.41 billion cubic metres.

The Accounts Chamber's forecast underscores a shift in Azerbaijan's energy landscape, with oil output continuing to face challenges while natural gas production shows robust and consistent growth. 

The figures highlight the country’s evolving focus on diversifying its energy portfolio, emphasizing the strategic importance of its expanding gas sector amidst global energy market fluctuations.

By Tamilla Hasanova