Oil exploration continues at full swing
Posted by meb at November 15th, 2008
Despite a sharp drop in oil prices in the past few months, Turkey has sped up efforts for oil prospecting the Black Sea in the hopes of finding oil fields.
A considerable drop in oil prices has not deterred Turkey from continuing oil exploration efforts in the Black Sea, contrary to common belief that Turkey may cease its search and continue to meet its oil needs through imports.
Oil prices eased recently after surging to record highs in the summer months. A gradual but considerable decrease in oil prices has been unable to stop Turkey’s efforts to discover rich oil reserves deep under the seas that surround it. Turkish Petroleum Corporation (TPAO) officials believe it will be profitable to meet Turkey’s need for oil from oil fields within the country once the price of oil exceeds $50 per barrel.
Turkey spent $4.1 billion to meet its oil needs in 2002, when a barrel of oil cost $23.4. When in 2007 the price of a barrel of oil surpassed $68.1, this figure rose to $11.8 billion. The budget allocated to oil imports grew even more in 2008, pushing Turkey to speed up oil exploration efforts in the Black Sea. Though a considerable decrease has been observed in oil prices recently, Turkey seems determined to continue the search for oil in the seas it borders to reduce its dependence on foreign countries.
Speaking with Today’s Zaman, TPAO General Manager Mehmet Uysal said Turkey will continue prospecting for oil, adding that an investment of over $1 billion has been made since 2004 to discover oil reserves under the Black Sea. “We believe the Black Sea is a prime spot and that these reserves may provide us with around 10 billion barrels of oil, an amount that would meet Turkey’s oil needs for 50 years,” he stated.
TPAO is searching for oil in the Mediterranean Sea, as well. With high expectations for the region, the company is working over a large area. An official from TPAO announced last month that the corporation is determined to continue its search in the deep waters of the Mediterranean. The Black Sea, however, is believed to have even larger reserves of oil, the reason why TPAO continues oil exploration, though oil prices have been falling worldwide.
Uysal said Turkey will not halt its search for oil in the Black Sea despite mounting costs. The cost of offshore drilling in the deep waters of the Black Sea is approaching $200 million; however, the head of TPAO is hopeful that efforts will prove fruitful in the near future. “We plan to start producing oil in this region by 2015. I believe Turkey will declare its energy independence in 2023,” Uysal said.
Turkey accelerated its oil exploration efforts in the Black Sea in the aftermath of a speech delivered last August by Energy Minister Hilmi Güler, who said the country would focus on oil prospecting in 2009.
“We will concentrate on searching for oil under the Black Sea in 2009. We’ve received signals that the Black Sea may be like the Caspian Sea, rich in oil reserves. We look forward to hearing good news from those involved in exploration work,” he said.
Professor Doğan Perinçek from the department of geology engineering of Onsekiz Mart University in Çanakkale noted that Turkey will make wise use of investments in oil exploration.
“I believe equipment purchased by TPAO to search for oil fields deep under water will be of great use. TPAO was short of this equipment in the past, and its purchase of this equipment has strengthened Turkey’s capacity and ability to carry out more successful oil exploration,” he stated.
After efforts were intensified to search for rich oil fields in seas surrounding Turkey, TPAO spent millions of dollars in purchases of professional oil exploration equipment. Some of this equipment has the ability to search for oil 6,500 meters below sea level. The company is also cooperating with the Mining Exploration Institute (MTA) for the construction of a ship to be used during the searches.
Perinçek, however, believes the budget allocated for the purchase of the equipment is very small compared to Turkey’s current account deficit. “As oil prices continue to decrease, Turkey’s current account deficit will drop. Investment in oil exploration is almost of no importance when compared to our current account deficit,” he said.
Perinçek strongly believes the Black Sea is rich in oil fields. “The Black Sea is a source of hope for us. There is much oil there. Rich oil fields in the Black Sea should be discovered,” he said.
TPAO’s Uysal believes Turkey may face a fortune akin to that of Norway, which discovered large oil fields at a time when it was about to stop oil prospecting efforts. Norway currently possesses about 50 percent of Western Europe’s oil and gas reserves.
“Norway spent billions of dollars to find oil reserves. It became one of the world’s greatest oil producers at a time when almost all hope vanished that it would detect oil fields. Turkey may experience similar things with the discovery of rich oil fields deep under the Black Sea. Equipment purchased to be used in oil exploration will help us increase our ability to detect oil reserves more easily,” he added.
source: Today’s Zaman
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