The energy bill could amount to 71 billion dollars

At the end of this year, Turkey’s energy import bill is expected to remain at the level of $71 billion. However, additional production cut decisions by the two largest exporters, Saudi Arabia and Russia, and expectations that the price of a barrel of Brent oil will exceed $100 may increase Turkey’s energy bill exponentially.

EXCEEDED 96 BILLION DOLLARS

According to information from the Medium Term Program (PMP), sanctions imposed on Russia following the war between Russia and Ukraine caused a rise in raw material prices last year, while Turkey’s energy imports reached historic levels of 96.5 billion dollars. This year, due to the increase in gas reserves in Europe and the effect of weak demand in China, which was below expectations, energy prices decreased significantly compared to last year’s levels, and imports Turkey’s energy prices decreased by 26.2 percent in the January-July period. compared to the same period of the previous year, reaching 41 billion dollars. At the same time, it is estimated that energy imports will decrease by 26.4 percent compared to last year, reaching 71 billion dollars. However, predictions by US investment bank Goldman Sachs that oil could rise to $107 in 2024 indicate that energy costs over the next two years may put pressure on Turkey.

Unless there is a significant change in energy prices, it will be necessary to pay 77.3 billion dollars for energy imports in 2024 and 76.3 billion dollars in 2025. In fact, the MTP foresees that the average annual price of Brent crude oil, which last year was 100.8 dollars per barrel, will be 82.3 dollars in 2023, 86.7 dollars in 2024 and 85.9 dollars in 2025.

The objective of reducing foreign dependence

The PMP, announced last week, also included goals aimed at reducing foreign energy dependence. Consequently, oil and natural gas exploration and production activities will accelerate. Overseas production fields, where TPAO operates with different partnerships in the energy field, and fields with potential will be evaluated. The storage and regeneration capacities of natural gas storage facilities will be increased. A facility will be established to produce Sakarya gas using it as input.