Baku Oil: The Lifeblood of Civilization

We live in an era of rapid scientific and technological progress—an era that would be unthinkable without abundant energy resources. Today’s world relies heavily on one fundamental force: electricity. And at the heart of electricity production lies oil. For Azerbaijan, oil and gas have long remained the cornerstone of national income and industrial strength.

Even today, the soil beneath our feet is rich with hydrocarbons. In many parts of the Absheron Peninsula, crude oil naturally seeps to the surface, and pumpjacks are a familiar sight. Azerbaijan extracts the very substance that powers global civilization.

Ancient Origins

The history of oil extraction in Azerbaijan is as ancient as it is extraordinary. Archaeological evidence suggests that crude oil was being extracted and exported from the Absheron Peninsula as early as 5,000 years ago.

Near the Caspian Sea, in the suburbs of Baku, researchers discovered remnants of megalithic roads made from flat stone slabs with carved parallel grooves—structures now referred to as the Absheron Stone Tracks. Radiocarbon dating reveals that these stone roads predate even the Derbent Fortress.

For years, scholars speculated these roads were used to transport salt or fish. However, the sheer size and durability of these constructions point to the transportation of something more substantial—perhaps oil.

The nearby Gobustan Desert and Absheron are home to unique hollow sandstone formations created by ancient mud volcanism. These natural drums, called "Gaval Dash" or "Singing Stones," are light, resonant, and easily carved. Hollowing out these rocks created perfect makeshift tanks. Mounted on sturdy wheels and drawn by oxen, these stone tankers likely carried oil from inland deposits to waiting ships along the Caspian coast. Back then, oil lay exposed in shallow pools—and not just any oil, but the exceptionally pure variety known as White Oil.

The First Oil Boom

White Oil, a transparent and highly refined form of crude, was found primarily in Surakhani, a district of Baku. Its purity caught the attention of European industrialists, most notably the Nobel and Rothschild families.

By the mid-19th century, these powerful investors had poured massive funds into the region. Their arrival sparked Baku’s first oil boom. Initially, surface oil pools and shallow wells were exploited. But as those dried up, deeper drilling began. It was here in Baku that the world’s first oil derricks were built, starting in 1846.

The Soviet Era

The 20th century brought further industrialization. The Soviet Union established its premier petroleum university in Baku, training specialists who would later lead oil enterprises across the globe.

In 1949, the world's largest offshore oil platform was established — Oil Rocks (Neft Daşları), a remarkable oil city constructed right in the Caspian Sea. Innovations such as marine tankers and rotary drilling technology (a world first) revolutionized the industry and became global standards.

Modern Oil Power

At the end of the 20th century, Azerbaijan signed what became known as the "Contract of the Century" with leading global oil companies. This deal paved the way for offshore exploration and drilling in deep-sea fields.

Azeri Light, Azerbaijan’s premier crude oil, is now considered one of the most valuable on the global market. Its ease of refinement into gasoline, diesel, and kerosene makes it exceptionally valuable.

Moreover, British Petroleum’s largest gas contract is linked to Azerbaijan’s Shah Deniz field, emphasizing the country’s continued role as a global energy leader.

Baku: The World’s Oil Capital

Given its deep historical roots, groundbreaking innovations, and ongoing global relevance, Baku rightfully holds the title of the world’s oil capital. For visitors exploring the region, understanding this rich oil heritage offers a deeper appreciation of the city’s unique role in shaping modern civilization.

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