ÇAĞRILI KONUŞMALAR / KEYNOTES Invited Speeches ... - TPJD

Search of a Sustainable Solution to the Energy Problems of Turkey
İbrahim Palaz
BOTAŞ International, Ankara
It seems quite clear that petroleum will remain significant in the energy make up for the world
in the 21st century. The petroleum industry is old, dirty, and unpopular but alternatives appear
almost as illusive now as before anytime in the history. It is clear therefore until a viable alternative
becomes available, we must continue to meet all challenges this industry presents. We know it
works and if we continue to meet challenges we can sustain our way of life as we know now. This
is by no means to stop searching for alternatives or stop diversifying energy solutions. Turkey’s
energy is met by nearly 60% oil and natural gas. Turkey depends on imports by 95% and 97%
oil and natural gas respectively. Volatility in the global oil price not only impacts oil consumers
but also oil indexed natural gas consumers in every segment of the entire population. These
combined with the fact that Turkey is increasingly becoming addicted to natural gas puts Turkish
economy overly sensitive to global oil price. Turkey has a vibrant growing economy with young
population presenting itself as one of the most promising countries in the world. Vulnerability of
Turkish economy to oil prices hangs over its potential as dark clouds. The questions we must ask
at the moment are where Turkey would be at when oil is $175/bbl or then, $200/bbl? Turkey has
to find solutions to oil and gas dependency on foreign oil and gas. Are there solutions? How to
eliminate this dependency or how to reduce it in the near term while aiming in the long run for
independence? The fact is when we look at the other economies in the world Turkey is not alone
as there are large number of countries with growing economies and with significant oil and gas
import dependency hence we may adopt some of the solutions other have implemented.
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