Shale Gas: A Solution to Turkey’s Energy Hunger?

Abstract

The aim of this short analysis is to answer whether shale gas can be a sustainable solution to Turkey’s long-term energy needs. Turkey, with no significant hydrocarbon reserves of her own, is vulnerable to the risks and challenges associated with energy import dependency. Having a fast-growing natural gas demand has caused Turkey to undertake many gas import contracts. In 2013, 98 % of the natural gas consumption is imported. Globally increasing natural gas prices and volatile Turkish Lira/US Dollar exchange rate have a series of ramifications, including a substantial burden on national budget and balance of payments. It is crucial for Turkey to reduce the share of imports in energy and to develop domestic resources in order to avoid exposure to relevant risks. In short, Turkey needs gas supply security. However, conventional natural gas reserves of Turkey are far from meeting its needs. Shale gas, in this frame, emerges as a buoyant potential for secure future gas deliveries. Given the example of unconventional gas frenzy in the USA, Turkey is now discussed as a long-term candidate for shale gas production. This possibility triggers high hopes, as well as unsupported expectations. Shale gas production has a long list of requirements: distinct geological formations, concordant conditions in surrounding area, advanced exploration and production technology, and capital-intense investments. Even if these conditions are fulfilled, environmental challenges of this production method are yet to be addressed and tackled diligently. Turkey is still on exploration phase of shale gas experience. It will take Turkey at least another decade to meet the requirements for tangible results and to name the shale gas as an answer to its energy hunger.