As Turkey's energy consumption increases exponentially, so does its importance as an energy hub and its search for local energy resources
Over the last decade, Turkey became the second country after China in terms of its increase in demand for natural gas. The Mediterranean country is expected to become one of the most dynamic energy economies of the world in terms of increase in energy demand, according to a statement by the Turkish Ministry of Foreign Affairs. Specialists from British Petroleum (BP) say Turkey's importance in the energy markets is increasing, both as a consumer and as a regional energy transit hub. Turkey's energy demand increased rapidly over the last few years and will likely continue to grow in the future. Turkey is projected to be the fastestgrowing energy market in the Organization for Economic Cooperation and Development (OECD) in the next 10 years, with the main drivers of the growth in demand linked to economic growth, industrialization and urbanization, according to reports by the OECD in 2013.
However, Turkey is increasingly dependent on natural gas imports as its domestic consumption rises each year. The limits of Turkey's domestic energy sources in light of its growing energy demand resulted in dependency on energy imports, primarily gas.
Russia was the largest supplier, representing 58 percent of total imports in 2013, followed by Iran with 19 percent, Algeria with 9.5 percent and Azerbaijan with 8.7 percent.
Turkey imported a total of $251.650 billion in 2013 and 22.21 percent of total exports constituted energy resources at nearly $55 billion. Turkey spent more than $20 billion importing natural gas, making up nearly eight percent of imports. According to analysts, these figures show that energy imports are the main drawback against prospective significant Turkish economic growth. For this reason, Turkey places too much importance on natural gas resources beneath the eastern Mediterranean.
The International Energy Agency (IEA) expects energy consumption in Turkey to double by 2025. Turkey is currently consuming nearly 50 billion cubic meters of natural gas per year and consumption will grow as fast as six to seven percent per year. This high growth in domestic consumption is pushing Turkey to maintain its claims in the eastern Mediterranean, known for its possible natural gas resources.
The eastern Mediterranean is predicted to hold more than 15 trillion cubic meters of natural gas, which can provide Europe's natural gas needs for 40 years, according to the report by the IEA in 2012. The same report states that there is five trillion cubic meters of natural gas beneath the waters within the Turkish seas. That amount of natural gas can meet Turkey's natural gas needs for more than a century.
However, Turkey and Greek Cyprus are in disagreement on the boundaries of the seas in the eastern Mediterranean. This disagreement stems from Greek Cypriot claims of sovereignty over the entire Cyprus Island and its surrounding waters, but in reality the island is split into two. Greek Cyprus is in the south, while the Turkish Republic of Northern Cyprus (KKTC), recognized only by Turkey, controls the north.
Following a restriction agreement with Lebanon creating an exclusive economic zone (EEZ), Greek Cyprus adopted the legislation on Jan. 26, 2007 and declared 13 fields of authority for natural gas and petroleum exploration in the southern part of Cyprus.
The borders of the fields have been determined with Egypt and Lebanon. The total surface area of the fields of authority is 70,000 square kilometers. The fields numbered 1, 4, 5, 6 and 7 infringed 7,000 square kilometers into the continental shelf of Turkey in the southern Mediterranean. The infringed area is larger than the area under the domination of Cyprus.
The Greek Cypriot administration opened a tender to give licenses to the other 11 fields, including the ones that expanded into Turkish authority. The Lebanon coastal areas on the east of Cyprus and the fields numbered 3 and 13, located near the shores of Cyprus, are excluded from the scope of the tender. The current practices of the Greek Cypriot administration infringed the rights of the Turkish Cypriots to the north. Out of the 55,000 square kilometers up for bid, 7,000 square kilometers infringed into Turkish seas and 48,000 square kilometers within Turkish Cypriot borders. However, the tender was unsuccessful thanks to pressure by Turkey.
These fields are expected to hold great amounts of natural gas, according to infrared satellite pictures taken by U.S. authorities presented in a report by the International Energy Institute in 2011. Turkish Minister of Energy Taner Yıldız said in January 2014 that Turkey will not renounce its legitimate rights to an EEZ in eastern Mediterranean.
Analysts say Turkey and Greek Cyprus must compromise on the maritime issues because Turkey is exposed to European countries' pressure on the matter after Greek Cyprus joined the E.U.
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