Three Key Factors Reducing Oil Revenues in Azerbaijan

Abstract

The year 2024 presents significant challenges for Azerbaijan's oil and gas industry, indispensable in generating income and attracting investments for the independent Azerbaijani economy. The reduction in oil production (1), the increase in operational and transportation costs (2), and the relative decrease in global market prices (3) contribute to the decline in oil and gas revenues. This article explores the reasons for the declining resource revenues in Azerbaijan in recent years and assesses the current situation based on the factors above.

Keywords: Azerbaijan, oil, gas, production cost, operational cost, transportation cost, oil price, revenue