Turkey has made major energy finds over recent years thanks to exploration technology. It has discovered huge natural gas and crude oil reserves off the North Sea and the East Mediterranean. That can have a significant impact on the Turkish economy because this country, which has been known as an importer of oil and gas, can now transform its internal and external economy. Of course, in the meantime, Turkey is faced with problems and challenges with regard to extracting and exploiting its energy resources.
It was in August 2020 that Turkish President Recep Tayyip Erdogan announced the discovery of the Sakarya gas field, around 170 kilometers off Turkey’s northern coasts and deep into the North Sea, with estimated reserves of 320 bcm. Two months later, another field was discovered in the same area, this time with estimated reserves of 85 bcm. That put Turkey in 11th position in the world in terms of subsea natural gas reserves with total amount of 405 bcm of known gas reserves in place. Over a period of five years, Turkey can invest $10-30 billion to extract gas from its reservoirs.
Energy import fallout
The discovery of oil and gas reserves by Turkey can turn this country, which was dependent on energy imports in the past decades, into a country that, in the first place, will meet its needs without having to import from other countries, and then it will have the chance to join oil and gas exporters in the world. In the past decades, Turkey imported about 99% of its natural gas and 93% of its oil needs from abroad. This amount of energy import had several major consequences for the country:
Turkey had to spend too much on oil and gas imports, which posed a challenge to the growing economy of Turkey. The big sums spent on energy imports could be used in others sectors of the country’s economy. Therefore, the discovery of gas resources can cut from the country’s $40 billon imports while creating job opportunities and businesses.
Turkish people had to always pay too much for energy, which imposed budget crunch on them. The impact of high energy prices on the ordinary life of Turkish people was significant. Therefore, new gas finds can positively impact their livelihood and fulfil their longtime dream of access to energy. It has to be kept in mind that failure to explore energy resources over recent years had disheartened the Turks.
Energy imports from other countries forced Ankara to have political reservations with regard to its energy resources. In fact, energy supply has always been a major factor in Turkey’s relations with Russia, Iran, Azerbaijan, Algeria, Nigeria, the United States, and Qatar. Undoubtedly, new energy finds would enable Ankara to no longer take seriously its reservations in political ties with other nations.
Domestic energy shortages and dependence on imports had led to Turkey’s increased dependence on goal for power generation over recent years. Now, new sources of energy can reduce coal use and help Turkey achieve its environmental objectives. / Shana
