This article discusses the influence of energy on security in the South Caucasus and Caspian region in the post-Soviet period. It claims that while energy is an important factor affecting security developments in the region, it is not the main driver. For instance, energy has not been an important factor in the emergence of the major conflicts that afflict the area: Nagorno-Karabagh conflict between Armenia and Azerbaijan and the secessionist conflicts of Georgia (Abkhazia and South Ossetia). In addition, serving as major energy exporters or transit states of energy to Western markets has provided quite limited security benefits and has not enabled the exporters and transit states to regain control of their occupied territories. Moreover, energy flows have not served as an inducement for peace in the region, and most likely energy supply will not serve this function in the future. Possession of significant oil and natural gas resources, however, has kept the energy producers of the Caspian relatively important on the Western security radar screen and thus increased their capability to carry out independent policies. In addition, control of energy infrastructure and influence over the export routes of oil and natural gas has been an important focus of the attempts of regional and global powers to gain influence in the region. Moreover, the region's energy transit states possess influence over their neighboring landlocked energy producers. In addition, possession of significant oil and gas reserves as endowed Azerbaijan with the resources to build a formative military force and this will affect the long-term security trends in the region.