Primary energy supply is about a quarter each from coal, oil, gas, and other sources.
During the 2010s, demand for oil considerably increased, mainly due to increased use ofdiesel,[11] and is forecast to slowly increase until 2040.[12] Over half of Turkey's imported oil and oil products are used forroad transport,[5] and Turkey is the world's largest user ofliquefied petroleum gas (LPG) for road transport.[6] It is hoped thelocally manufactured electric cars and other road vehicles from the country'sautomotive industry will eventually reduce the import bill.[13] In 2021, Turkey's consumption of diesel—both domestic and export—was over six times that of petrol.[14]: 19
Fossil-fuelled road-vehicle exhaust emissions pollute large cities withnitrogen dioxide and other gasses.[15] Air pollution from diesel is worse than that from petrol.[16]
Turkey's estimatedreserves of oil is about 600 million barrels,[a][14]: 19 and about 3 million tons are produced each year, about seven percent of Turkey's annual consumption.[22][23] The country imports around 25 to 30 million tons a year,[14]: 20 mostly from Russia and Iraq.[24][25]
Oil exploration licenses in Turkey are granted by theGeneral Directorate of Mining and Petroleum Affairs[22] but the process of granting them takes a long time and requires political influence.[30] The Petroleum Market Law provides incentives for investors to explore and produce.[31] Someenhanced oil recovery is carried out at Batı Raman.[32] As well as crude oil, the country imports oil products, diesel, LPG andpetcoke—which is used to make cement—and as of 2020[update], the country's energy import bill closely tracks the price of crude oil.[33] TPAO, which does most of the oil and gas exploration,[34] increased offshore exploration in 2020.[35]
Oil is piped fromAzerbaijan and Iraq and some is shipped from Russia to larger refineries (R) in the west. Azerbaijani oil is mostly re-exported by tanker fromCeyhan.Smalltankers, like this one, sometimes carry oil fromNovorossiisk on theBlack Sea, and pass through theBosphoros to supply refineries nearİzmir.
Diesel fuel imported from Russia is shipped to Turkey from the Black Sea ports ofNovorossiisk,Tuapse andTaman.[36] Only China and India buy more Russian oil than Turkey.[37]
TheKirkuk–Ceyhan oil pipeline has a capacity of 1.6 million barrels a day (mbd). Russian andCaspian oil is transported by ship through theBosporus.[38] In 2005, an oil-spill response law was passed in Turkey,[39] and in 2022, oil-tanker insurance was made compulsory.[40] As well asdrillships, there are two seismic ships.[41]
Turkey's oil imports from Russia increased after the 2022Russian invasion of Ukraine.[42] TheEuropean Union (EU) has banned direct imports of oil products from Russia since 2023,[43][44] but indirect imports continue as of 2024.[45] As of 2023[update], Turkey consumes large quantities of cheap Russian diesel, which may be freeing up diesel from Turkish refineries to be exported to the EU.[46]Oil tankers fromNovorossiysk deliver toKorfez andAliağa, near Turkey's third-biggest cityİzmir.[47] In October 2022, almost half of Russia's Black Sea crude was sent to Turkey[48] but it was unclear whether theEU oil price cap would affect Turkey.[49] Some Russian oil goes throughDörtyol terminal inHatay.[50] Most Russian diesel exports go to Turkey[51] because the EU has sanctioned such imports.[52]
Turkey's largest oil refiner isTüpraş[3] with four refineries. The newest refinery isStar Aegean, which is also in Aliağa and has over half the market for petroleum products.[60][3] Turkish oil'ssulfur content is generally high so refineries are being upgraded to meetMediterranean shipping sulfur limits,[61][62] which may be cut from 0.5% to 0.1%, possibly in 2025.[63] Together, the five refineries have a capacity of over 400 million tons a year (815,000 mbd) as of 2022.[64] Although refineries prefer to produce diesel rather thanjet fuel, half of the country's diesel has to be imported.[64]
There is a biennial trade fair in Istanbul.[65] In 2022, 28 billion litres of diesel and 4 billion litres of petrol were sold in Turkey.[66] Seventy percent of cars registered in 2022 were petrol, 18% diesel and 9% hybrid; and of cars on the road that year, 37% were diesel, 35% LPG and 27% petrol.[67] In mid 2023 theretail price of a litre of petrol was 24 lira (a tad under 1 USD at that time so slightly less than the USA price[68]) and diesel cost slightly less.[69] The government says that it varies thespecial consumption tax to try and smooth out retail price variations due to oil price and exchange rate fluctuations.[70]
Jet fuel cost the equivalent of 55 US cents a litre at that time.[71] Over one hundred thousand barrels of jet fuel are sold in a typical year.[72] Lessbunker fuel was sold in 2022, because of the decline in shipping due theRussian invasion of Ukraine.[73]
According to some analysts, the cost of imported oil and gas is a key weakness in theeconomy of Turkey.[74][75] Turkey buysUrals crude from Russia because it is cheaper than oil from other countries.[76][77] Russian oil is refined and the refined products are sold abroad.[78]
In Turkey, tax levied on diesel is lower than that on petrol, and it has been suggested by theIstanbul International Centre for Energy and Climate atSabancı University that taxes on diesel and petrol should be more-closely aligned with each other to minimise imports, because Turkey has enough petrol-refining capacity.[80]
In 2022 the Turkish Energy Minister said Turkey andAlgeria would create a joint oil-and-gas-exploration company.[81]
In 2019, theEuropean Council objected to the Turkish drilling activities in the eastern Mediterranean.[82]
Unlike several European countries, whichstopped buying oil and gas from Russia or were cut off after the 2022 Russian invasion of Ukraine,relations with Russia are such Turkey continues to buy both commodities from Russia.[8][9] Turkey can consume discounted Russian diesel, and also buys discounted Russian crude, which it refines and sells legally as of 2022[update][b] as Turkish at the global price.[83] For example,Shell andVitol are claimed to have done this with SOCAR and Tüpraş, although there is no proof the purchased products were refined from Russian crude.[84] Crude from different countries is often blended at refineries so as of 2023, it is not possible to tell where a barrel of diesel originated from; NGOGlobal Witness said the EU should ban products from refineries that refine Russian crude.[85]
In 2023, theInternational Court of Arbitration ruled Turkey could not import from Iraqi Kurdistan without the consent of the Iraqi central government.[92] Sales from Iraq have been affected by discounted Russian crude.[93]
Turkey intends to increase the share ofrenewables andnuclear power in the national energy mix.[94] According to a May 2022 report fromthink tankEmber,wind power andsolar power saved Turkey seven billion dollars on gas imports in the preceding 12 months.[95] It is hoped furtherelectrification, of sectors such as road transport[96] will reduce Turkey's dependency on imported oil.
In late Ottoman times, permission to explore for oil in theİskenderun area was granted to theGrand Vizier Kamil Pasha and later to Ahmet Necati Bey.[23] With the fall of the Ottoman Empire, oil and gas fields inMosul vilayet—of whichKirkuk was a part—were lost and since then, Turkey has had to rely on imports.[100] In 1926, the Turkish government took over oil exploration rights.[23] In 2001 natural gas was legally separated from oil.[23] TheGeneral Directorate of Mineral Research and Exploration was formed.[23] The first oil imports from Russia arrived in 1986 and from Azerbaijan in 2007.[101]
Between 2000 and 2020, Turkey's share of imported energy increased from just over 50% to 70%.[102] In 2022, Turkey's oil consumption decreased due to theCOVID-19 pandemic and resulting travel restrictions.[14]: 19 Also in 2022, Middle Eastern crude imports were displaced by imports of discounted Russian crude, which tripled in the period from before theUkraine invasion to 1 January 2023.[93]
^In February 2023, however, an EU ban on direct importation of products refined from Russian crude started; products of Russian crude refined in other countries are legal.
^"How do countries measure greenhouse gas emissions?".UNEP. 13 September 2022.Archived from the original on 16 April 2023. Retrieved23 May 2023.Countries report their emissions through what is known as a 'bottom up' approach, where national emissions are estimated by combining data on types of activity with the emissions typically produced by those activities.
Difiglio, Prof. Carmine; Güray, Bora Şekip; Merdan, Ersin (November 2020).Turkey Energy Outlook.iicec.sabanciuniv.edu (Report). Sabanci University Istanbul International Center for Energy and Climate (IICEC).ISBN978-605-70031-9-5.
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