Can Turkey Become an Actor in Energy? 'Do not search for oil in the Black Sea in vain' Mehmet Öğütçü, Chairman of London-based Global Resources Corporation, said, “Turkey should invest in neighboring countries like China did and Korea did. There is no point in spending 3 billion dollars and looking for oil in the Eastern Black Sea Region. Because today you are increasing a barrel of oil to 2,5 dollars in the Kurdish region of Iraq,” he said.
Öğütçü evaluated the development of the energy sector in the world and in Turkey.
Noting that the rules of the game in the field of energy and the players have changed in the world, Öğütçü said:
“Demand regions have changed, formerly the majority of demand was in OECD countries. Today it comes from East Asia, led by China and India. Even the Gulf Region, where two-thirds of the world's energy resources are located, has reached a tremendous position in demand.
The supply regions have also changed. We used to say Bay Area, we used to say Soviet geography, it would be over? Today, oil and natural gas have spread to different regions from Mozambique to Angola and Turkmenistan. Today, America is on its way to becoming the world's leader in both oil and natural gas production. By 2017, most of the world's oil will come from America.
Noting that the cost of extracting shale gas in the USA is very low, Öğütçü said, “Shale gas goes up to about 3,5-4 dollars. We pay 12 dollars for it in Turkey. Europe pays 14-15 dollars. Japan pays $18. There are also price differences. This also affects competition. In other words, the American industrialist can obtain energy much cheaper today. He can sell the goods he produces more easily in the world markets.”
“Post-Ukraine process needs to be evaluated”
Explaining that although Turkey is a foreign-dependent country with a rate of 98 percent for natural gas and 93 percent for oil, Öğütçü said that due to its location, it can trade between energy sources and energy buyers, adding that if Turkey uses its advantages well, it can consume energy more cheaply in the domestic market.
Stating that Turkey's environment is full of energy-rich countries, Öğütçü said, “Iraq, Iran, Russia, Azerbaijan, the Eastern Mediterranean? There are tremendous resources out there. As a country that knows the conditions of trade and trade, with a smart approach, Turkey can reduce the costs with a smart strategy, as a country that can use its 'lever' power politically.
Pointing out that one of the most important factors that increase the cost of energy consumption in Turkey is taxes, Öğütçü continued as follows:
“Taxes are very heavy. It is taxes that affect competitiveness very negatively. Especially now, after the crisis in Crimea and Ukraine, the European Union's view of energy will change. With the emergence of new source countries and demand countries, the flow of energy will change. Turkey is in an ideal position at this point. The post-Ukraine process needs to be evaluated by the current government and leading Turkish companies.”
Öğütçü, who complained about the weakness of governance among energy companies in Turkey, said, “Gather all Turkish energy companies, you are looking at the total asset value, we cannot reach the value of a single oil company in Malaysia. Such a country? Energy dependency, energy imports up to 60 billion dollars, investments in solar, oil, natural gas, electricity?. And we do not have the assets to create a Malaysian company”.
“If you add all the private sector energy companies in Turkey, there is no Petronas”
Explaining that the world needs 2035 trillion dollars of energy investment until 37, while Turkey requires 10 billion dollars for the next 150 years, Öğütçü said, “Where will you find this money? It is not possible for Turkey's state resources to find this money. I already mentioned the private sector. If you add all the private sector energy companies in Turkey, one Petronas wouldn't work? Where will you find this money? Turkey needs to develop a strategy in this regard," he said.
Reminding that Turkey is the OECD country that pays the most for oil, Öğütçü drew attention to the strategic advantages in energy investments and said:
“However, we can buy it from Iraq and Iran at very reasonable prices. A; It is necessary to take a good look at the tax issue. It has to be reduced. Two; The current market shows an enormous abundance of both natural gas and oil. In such an environment, Turkey can make contact negotiations much more easily. Can get it cheaper. Turkey should invest in neighboring countries like China did and Korea did. There is no point in spending 3 billion dollars and looking for oil in the Eastern Black Sea Region. Because today you are increasing a barrel of oil to 2,5 dollars in the Kurdish region of Iraq. In Libya, Saudi Arabia, Kazakhstan, you can increase it to 3 or 5 more or less the same rates. That's why Turkey needs to draw this financial investment framework well and move forward in line with its own needs.”
“It was cement, iron-steel, aluminum? Don't go into such things"
Advocating that Turkey should withdraw from energy-intensive industries quickly, Öğütçü said, “Are you going to leave energy-intensive industries like the West? You will shift to sectors that we call 'smart', use less energy and have high added value. Was it cement, iron-steel, aluminum? Don't go into such things. Because they consume enormous energy. Even energy-rich countries do not want to enter. Therefore, in the restructuring process, each topic should be considered individually. Of course, renewable energy is very important, but it should not be exaggerated. Today, if you disable hydropower, the share of renewable energy in Turkey's energy mix is extremely small.
“A country like Turkey must have a nuclear share of at least 10 percent in its energy mix”
Noting that he had previously prepared futuristic projections for 2050 at the International Energy Agency (IEA), and that such studies generally remained on paper, Öğütçü said, “It stays on paper because there are such developments that suddenly the game changes. One of them is shale gas? Who knew 10 years ago something like this would happen in America. Now Australia has appeared? No one would have counted Australia. Even more important than Qatar at the moment in liquefied natural gas (LNG)? Turkmenistan and Iran did not appear yet. Therefore, long-term planning is important.”
Öğütçü stated that he found Turkey's stance on nuclear energy "wise" and said, "So, be as pro or anti nuclear as you want, when you look a little objectively, a country like Turkey that does not have an energy source has to have a nuclear share of at least 10 percent in the energy mix." said.
Source : http://www.hurriyet.com.tr/