Energy and Turkish Foreign Policy: Energy Security and Energy Strategy

Geographically speaking, Turkey is positioned between energy supplier states (in the Middle East, the Caspian region, and potentially Eastern Mediterranean)
and consumer states (such as Turkey and the European-Union members). This makes Turkey very well situated to pursue a foreign policy that has a considerable energy security/geopolitics dimension.

Parallel to the increasing importance of energy geopolitics in Turkish foreign policy making during the last two decades, it can be argued that the historical evolution of energy dimension so far has occurred in three stages. The first stage is the formation of the idea of becoming an energy corridor that envisions a geostrategic role for Turkey especially after the Cold War and the collapse of the Soviet Union.

Despite an increase in consumption, the contribution of domestic energy sources to energy mix remains limited. The International Energy Agency shows that in 2015, only 24.8 % of total primary energy supply (TPES) was met by domestic sources (IEA, 2016:22).

Although Turkey produces some oil in the southeastern cities of the country (such as Batman and Adıyaman), this is far from meeting its domestic need

Since 2005, Turkey’s oil imports have grown more than 250%. This increase makes Turkey an important trade partner for the energy security of the supplying countries as well.

Especially during the last decade, the increasing natural gas imports combined with the oil imports from Russia, elevated Russia to a position of “key energy trade partner” for Turkey (Ediger and Bağdadi 2010; Kardaş, 2011a; Kardaş 2011b). For example, in 2015, 55.1 percent of total natural gas imports of Turkey were from Russia.

The structure of electricity generation
dependent on natural gas bears important
risk, therefore it is necessary that the share
of natural gas in electricity generation
should be decreased and countries for
imports should be diversified.
• It is necessary that investments on
transmission and distribution infrastructure
should continue and should be completed
on time for the purpose of supporting the
sectoral growth in electricity and natural gas.
• Natural gas storage capacity is not adequate
currently and is required to be increased.
We have substantial potential in terms of
both electricity and heat generation in
renewable energy sources such as solar,
wind, hydro-electric, geo-thermal, biomass, wave and tidal. However, in order
to accomplish utilization of this potential
fully, financial opportunities should be
improved, legislation should be updated
and transmission infrastructure should
be strengthened; furthermore investor
awareness should also be increased.
• Turkey, due to its position, is suitable for
being an energy transition center (hub);
however relevant infrastructure, market
formation and regional effectiveness should
be provided.
• A considerable import dependency exists in
oil and natural gas. Although we have some
institutions involved in oil and natural gas
exploration studies, these activities should
be intensified, initiatives for shale gas
exploration and generation should be taken,
strong domestic companies should increase
their foreign contacts and initiatives and
foreign sources should be introduced into
domestic utilization.

• There exists an important demand
management potential in industrial sector
for lowering the peak demand in electricity,
but legislation and market structure should
be developed for enabling an active demand
management implementation (MENR,
Strategic Plan 2015-2019:23).

1) Strong and Reliable Energy Infrastructure;
2) Optimum resource diversity, and 3) Effective Demand Management.

Having access to oil and gas resources of the exSoviet geography, particularly of the Caspian region, was crucial for Turkey to ensure its energy
security. This was important because the potential
in the ex-Soviet geography meant that Turkey
could finally have an access to resources outside
the Middle East and, maybe more importantly,
these resources were in the geographical proximity
to Turkey. Furthermore, the energy-rich Caspian
region was offering Turkey a new venue for
establishing partnerships with Turkic post-Soviet
states, especially with Azerbaijan and Kazakhstan

Lowering their dependence on both Russian gas resources and
the Russian gas pipeline network was the primary
motivation of the EU countries in their policies
toward the Caspian region.

With its multipartner structure, expensive budget, and long route,
Nabucco was not an easy project to complete

On December 26, 2011, Turkey and Azerbaijan
signed an intergovernmental agreement for the
construction of Trans-Anatolian Natural Gas
Pipeline (TANAP) that would bring Azerbaijani
natural gas to Turkey

“The concept of Energy Hub can be defined as a central point where multiple energy carriers meet
each other and respective energy flows can be converted, conditioned, stored and finally distributed
according to the demand requirements in an optimal manner” (Walker et.al.2017, p. 227).

After a decade from this report, the Ministry formulated the basic
principles of Turkey’s energy strategy as follows (MFA, Energy Issues):
• Taking into account increasing energy demand and import dependency, prioritization among
energy supply security related activities;
• Within the context of sustainable development, giving due consideration to environmental
concerns all along the energy chain;
• Increasing efficiency and productivity, establishing transparent and competitive market conditions
through reform and liberalization;
• Augmenting research and development on energy technologies.

the Energy Strategy of 2015-2019 of the Turkish Ministry of Natural Resources
and Energy mentions eight main targets: 1)
Security of Energy Supply; 2) Energy Efficiency
and Energy Saving; 3) Good Governance
and Stakeholder Interaction; 4) Regional and
International Effectiveness; 5) Technology, R&D,
and Innovation; 6) Improvement of Investment
Environment; 7) Raw Material Supply Security; 8)
Efficient and Effective Use of Raw Material.

The Ministry of Foreign Affairs has also identified the energy security specific foreign policy goals as
follows (MFA, Energy Issues,):
• Diversification of supply routes and sources for imported oil and natural gas;
• Increasing the ratio of local and renewable energy in our energy mix;
• Increasing energy efficiency;
• Adding nuclear to our energy mix

Türkiye Petrolleri Anonim Ortaklığı (TPAO), Turkey’s national hydrocarbon company, has been
the key actor in both producing oil and gas domestically and participating in oil and gas development
and production activities abroad (including Azerbaijan, Iraq, and Russia). TPAO’s participation in
the development of Azerbaijan’s oil and gas resources has been a milestone in terms of expanding the
company’s involvement in international projects. In addition to the energy hub strategy, in the last decade
the Turkish governments have taken steps toward developing a hydrocarbon exploration and production
capacity (TPAO web page).

The Greek Cypriot strategy involved a
process: first dividing Eastern Mediterranean into offshore exploration blocks, and implementing seismic
surveys of these areas, and then holding tenders and so inviting international companies to take part in oil
and natural gas exploration

The Turkish Petroleum Corporation purchased the first seismic ship of
Turkey, Barbaros Hayreddin Paşa, from Norway in 2013.

In 2015, Turkish engineers in a domestic shipyard in Istanbul built a second research
vessel, MTA Oruç Reis. The ship, which is owned by the Turkish General Directorate of Mineral
Research and Exploration (MTA), is currently conducting seismic surveys in offshore Eastern
Mediterranean in a similar manner