Azerbaijan has rocketed into prominence as the most important supplier of Caspian oil and gas to Western nations. Yet it plays a decisive balancing act between the major Caucasus/Caspian players, e.g. Russia and Iran, and the United States and Europe in charting an economically sustainable and independent future. The frozen conflict in Nagorno-Karabagh is a huge domestic and regionally explosive issue that the country would like settled but that tangibly has seen very little progress to date. How Azerbaijan and Europe deepen their engagement in the energy trade bodes well for both parties, but energy alone is not enough from an Azerbaijani perspective.