Turkey’s oil reserves are relatively small compared to its consumption, making it heavily reliant on imports. In this article, we’ll delve into the details of Turkey’s oil situation, exploring its reserves, production, consumption, and import dependence.
Key Takeaways:
- Turkey has 312 million barrels of proven oil reserves, ranking 53rd in the world.
- This amount is less than a year’s worth of its consumption.
- Turkey produces 66,308 barrels per day, ranking 58th globally.
- It consumes 941,861 barrels per day, ranking 22nd worldwide.
- Turkey imports 502,570 barrels per day, accounting for 53% of its consumption.
Turkey’s Oil Reserves: A Limited Supply
With 312 million barrels of proven oil reserves, Turkey’s oil wealth pales in comparison to other major oil-producing countries. This amount represents a mere 0.02% of the world’s total oil reserves and falls short of even a single year’s worth of its consumption.
Production: A Drop in the Bucket
Turkey’s oil production stands at a modest 66,308 barrels per day, ranking 58th globally. This amount constitutes only 7.8% of its total proven reserves, highlighting the country’s heavy reliance on imports.
Consumption: A Thirst for Oil
Turkey’s oil consumption is substantial, reaching 941,861 barrels per day, placing it among the top 22 oil-consuming nations. This translates to an average of 0.49 gallons per capita per day or 178 gallons per capita per year.
Import Dependence: A Balancing Act
To meet its energy demands, Turkey heavily relies on oil imports, accounting for 53% of its consumption. This dependence exposes the country to fluctuations in global oil prices and geopolitical uncertainties.
The Future of Turkey’s Oil Landscape
Turkey’s limited oil reserves and heavy import dependence pose significant challenges. However, the country is actively exploring alternative energy sources, including renewables and nuclear power, to reduce its reliance on imported oil. Additionally, ongoing efforts to increase domestic oil production could help mitigate its import dependence in the long run.
Frequently Asked Questions
Q: How much oil does Turkey import?
A: Turkey imports 502,570 barrels of oil per day, accounting for 53% of its consumption.
Q: What are Turkey’s alternative energy sources?
A: Turkey is exploring renewable energy sources like solar, wind, and geothermal, as well as nuclear power.
Q: What is the future of Turkey’s oil landscape?
A: Turkey aims to reduce its import dependence by increasing domestic production and diversifying its energy mix with alternative energy sources.
Additional Resources:
- Worldometer: Turkey Oil Reserves, Production and Consumption Statistics
- Reuters: Turkey’s oil imports jump 30% in January
- BP Statistical Review of World Energy
Note: The information presented in this article is based on data from 2016, the latest year with complete data in all categories.
Oil and Gas – Turkey Explore oil and gas export opportunities and the regulatory environment in Turkey. Tab Options
Oil is a net import for Turkey. Turkey imports energy resources like coal, natural gas, and oil for more than $40 billion annually. Local oil production meets only 7% of the demand, so Turkey imports approximately 260 million barrels of oil. Shale gas has not been widely explored. Turkey is a significant consumer of gas and oil, with a GDP of about $800 billion and a population of over 80 million. However, it also serves as a major transit nation for natural gas produced in Russia and Azerbaijan, with potential supply from other countries in the region.
Other resources found in the Eastern Mediterranean and Iraq can be transported through pipelines from Turkey to Europe. Turkey intends to import compatible LNG rather than long term pipeline gas. Turkey imports approximately 45 bcma of natural gas every year. Although in the previous years the pipeline gas was 80% of the gas imports and LNG was 2020%, in 2019 this changed to 2073% and 2027%, respectively, because of the attractiveness of compatible LNG prices. The main importer of LNG is state-owned company BOTAS and other private firms also possess import licenses. However, unless the market is fully liberalized, these private sector importers will not be market players. Turkey has two LNG terminals and two FSRU facilities.
LNG is supplied from Algeria, Nigeria, the United States and Qatar as spot LNG. Turkish Petroleum (TP), a national oil and gas exploration and production company, conducts oil TP is a major buyer of upstream equipment for both onshore and offshore explorations. Other private sector producers operating in Turkey procure their own equipment usually from the U. S. , China or European companies. Several long-term piped gas agreements will expire in the first quarter of 2021, making engagement with Botas for LNG and piped gas crucial.
The Turkish Government is focusing on offshore Mediterranean and Black Sea exploration and drilling. Therefore, upstream equipment and services can find a good market in Turkey. Three national offshore ships are currently conducting exploration and drilling in the Eastern-Med. There is some localized oil production in southeast Turkey and natural gas production in the European Land of Turkey (Thrace). However, these amounts are minimal when compared with total demand for oil and gas. Being adjacent to the oil and gas-rich Middle East, Turkey needs to conduct a lot more exploration for these resources. In the global context, Turkey’s total exploration is still at very low levels.
By 2021, Turkey’s long-term deal with Russia to supply 16 billion barrels of natural gas will come to an end, allowing Botas, the national pipeline company of Turkey, to look for more affordable suppliers. Later, the long-term agreement with Iran to supply 9. 6 bcma will expire in 2025. Therefore, competitive pipeline and LNG supplies will find a good market in Turkey. Natural gas prices have been gradually being reduced by Botas, which has led to higher gas prices on the local market, especially for gas supplied to power plants. Consequently, the majority of privately-owned gas-fired power plants have ceased operations temporarily. Low electricity prices made possible by cheap hydro power generation and over-capacity have also contributed to this trend. With a liberalized gas market and economic growth in a few years, demand from power generation may increase. In southeastern Turkey, some prospects exist, and some production and new discoveries are occurring. In the Thrace Basin, there are additional exploration opportunities. Turkey is a major importer of methanol, so there is a good market for methanol made from natural gas there.
Turkey, with pipeline connections with Russia, Iran, and Azerbaijan, additionally with two LNG import terminals and two FSRU facilities, has a very competitive environment. Therefore, entering into the market requires competitive prices in comparison to pipeline gas prices, which is currently indexed to oil prices. Energy Market Regulatory Authority (EMRA) passed a regulation this year that spot gas delivery through pipelines will also be possible. Turkish Government prefers spot NG or LNG to avoid the risk of take or pay long term contracts as the consumption is unpredictable nowadays. Another reason for this trend is to establish a competitive gas exchange market through the Spot Natural Gas Market established at the Turkish Energy Exchange of Istanbul (EXIST) (https://www.epias.com.tr/en/spot-natural-gas-market).
Best Prospects for U.S. Exporters
Turkey is a major importer of LNG, LPG, NG, crude oil and petrochemicals. Therefore, Turkey is becoming a major LNG export market for U. S. firms. CS Turkey receives U. S. LPG supplier inquiries from Turkish importers from time to time. Interested U. S. suppliers should contact U. S. Commercial Service at the U. S. Embassy in Ankara, Turkey. Turkish investors are also seeking technology suppliers of machinery and equipment to establish a new methanol production plant. Turkey imports approximately $21 billion of methanol annually for use in the chemical and petrochemical industries. A Turkish investor is searching for U. S. partners to establish an ethylene-to-polyethylene plant in Turkey. They intend to use the excess ethylene supply from recently established petrochemical plant production facilities in the United States that utilize unconventional gas produced in the S. This company already has a harbor facility in the province of Mersin at the Turkish Mediterranean coast. In the near term, an immediate opportunity would be direct methanol exports to Turkey. Oil is another excellent prospect.
The Turkish Petroleum Law (https://www.petform.org.tr/en/mevzuat/arama-uretim-sektoru/) provides special incentives for oil & gas exploration and production investors. If interested, the “Petroleum Market Law” and the “Law in Natural Gas Market” can be found at the Energy Market Regulatory Authority’s (EMRA) website: https://www.epdk.org.tr/Home/En. Other regulations and by-laws can be found at this link as well.
In contrast to US law, Turkish laws and regulations declare that the Republic of Turkey is the owner of all natural resources. On the other hand, the Ministry of Energy and Natural Resources’ MAPEG (Mining and Petroleum Affairs General Directorate) permits the private sector to explore for and produce these natural resources. Development and production of such natural resources are regulated by the petroleum or mining laws. These laws allow for a fairly lax process, which includes the ability to transfer dividends to the foreign investors’ headquarters.