Turkey Will Secure Its Energy Supply, No Matter The Cost | WHAT REALLY HAPPENED

Turkey Will Secure Its Energy Supply, No Matter The Cost

Economic problems resulting from US sanctions and the decline in the value of the Turkish lira will increase the already record high trade deficit, currently half of which is related to energy imports. In 2017 it amounted to 77 billion USD, more than twice the amount of 2016. Erdo?an is determined to create a politically dominant state. To this end he needs to ensure energy independence, which can be done through the occupation of the oil fields in Kirkuk, and the acquisition of the gas fields of Cyprus.

The increase in oil prices will affect the trade deficit even more, while 75% of its value will be energy imports. The average annual barrel price in 2017 was 54 USD, and this year the average cost is about 70 USD, and the price will continue to rise. All of this is a drag on Turkish economy. To counteract the negative balance sheet, Recep Erdo?an will take more determined steps to ensure energy independence. This, however, will lead to turmoil in the region.

1. Kirkuk, one of the oldest and largest oil fields in the Middle East, is located in the Kurdish autonomous area in northern Iraq.

2. Turkey under the pretext that some areas of the coastal sea zone in Cyprus (like Block 3, which Gefira team analyzed in February) fall under the jurisdiction of Ankara-dependent Turkish Cypriot government (Northern Cyprus) intends to extract gas from the Cyprus Exclusive Economic Zone (EEZ). At the beginning of this year the Turkish navy prevented the Italian Eni group vessel from operating in the Cypriot economic zone. Erdo?an already made a statement addressed to the authorities in Nicosia and Athens:

3. Maintaining good relations with Qatar is essential for Turkey.

Erdo?an’s plan for Turkey is the restoration of the Ottoman power and its role in the region and in the world. To accomplish that, he has to shrink its trade deficit and secure his energy supply.