Promising times ahead for Turkey’s oil industry: Discoveries and production increase

Supply and demand imbalances create uncertainty in oil markets
Promising times ahead for Turkey’s oil industry: Discoveries and production increase
Turkey's oil industry on the rise

Turkey was optimistic about its energy potential following several major oil and gas discoveries in recent months. The discovery of 150 million barrels of net oil reserves in the Gabar mountain in the Sirnak province in December 2021 was valued at around $12 billion and put Turkey in the top 10 onshore discoveries in the country last year.

State-owned oil and gas company TPAO (Turkish Petroleum Corporation) has accelerated its exploration and production activities in recent years, achieving 34 discoveries in 2021, adding 71 million barrels of reserves. TPAO’s output has significantly increased, from around 40,000 bpd in 2017 to 65,000 bpd in 2022. Their success has led to plans to drill 12 more wells in 2023, with hopes of achieving an output of 25,000 bpd by the end of the year.

Turkey’s energy potential remains promising. The recent discoveries and increased production have put the country on track to achieve energy independence and increase its daily oil output to 100,000 bpd in 2023.

Read more: UAE, Turkey explore ways to boost cooperation in various fields

Oil prices dip

Oil prices were lower on Wednesday as uncertainty loomed over the effectiveness of the U.S. debt ceiling agreement and conflicting statements from key oil producers regarding future supply levels. The upcoming OPEC+ meeting on June 4th has created further uncertainty, with mixed messages from major oil producers regarding their intentions to increase or maintain output cuts.

These concerns about demand and supply have kept investors on the sidelines and created a stand-off in the market, with the WTI (West Texas Intermediate) Oil priced at at $69.43, down from its previous day’s trading value of $72.56.

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