President Mr. Erdogan “good news” announcement which pointed to a “new era” started the talks of conversion effect in the energy area. Energy, as the driving force of Turkey's current account deficit, stands at a crucial moment. The reserves that were found, meets the 8-year need of Turkey, when a simple calculation is made the basis of Turkey's annual consumption. Of course, costs such as transportation and drilling will also come into play. If the discovery of such resources continues, which is likely to happen, greater benefits will be achieved. To save Turkey from foreign currency sensitivity is crucial for economic transformation. The decrease in the cost of foreign exchange in energy and the increase in the rate of localization will contribute to the household economy as well as the production economy.
We stated that there is an important potential improvement in terms of the composition of the current account deficit and the transformation of the economy in the following years. The 320 billion cubic meters found seems to be below the source news reported and expected amount, but the discovery of additional resources within the relevant field may also be possible. This kind of additional discovery of energy reserves, both in the Black Sea or the Mediterranean will stand out more, as well as using and handling them. The importance of this comes from two aspects stand out; The first is to reduce foreign dependency in energy, and the second is to provide foreign currency inflow to the country by exporting Turkish natural gas. There are, of course, several factors that will determine the extent of these potential advantages. Factors that may affect the cost of extracted natural gas such as extraction cost, processing, drilling and transportation will determine the competitive conditions in international markets. These factors also determine the cost issues that will occur in terms of domestic economy. While predicting the implications of this for the current account deficit, we need to take into account factors such as those that are not visible at first.
And of course much more important as the access to energy resources for Turkey, world’s renewed energy standards is also important to adapt. In addition to traditional fuels such as petroleum and natural gas, Turkey should develop their potential, make investments and adapt to international competition conditions in areas such as renewable energy, solar energy, transition to green economy with environmentally friendly energy sources and electric car technology.
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