Turkish President Recep Tayyip Erdogan announced his nation’s largest ever natural gas discovery today. It is a 328 billion cubic meter field in the Black Sea that could be part of a bigger reserve. Erdogan has hinted that the gas could start being extracted by 2023. The field, if as large as Turkey claims, will also give Ankara the advantage when the time comes to renegotiate its existing natural gas import agreements. Turkey presently relies on imports to cover almost all of its energy needs. Energy import bills have been a consistent drag on its currency for years. In 2019 Turkey paid out $41 Billion on energy imports, these payments putting a large dent in the nation’s currency reserves.
Most importantly, the find will have a positive effect on the Turkish economy down the line. The Turkish Lira is responding positively to the news, a marked contrast from the unprecedented slide it has endured lately. It won’t last, however. Turkey’s economic troubles are too broad to be solved by a major natural gas find. Rising inflation, and interest rates, record unemployment, and a recession are some of the obstacles the Turkish economy is trying to overcome right now.
Erdogan also said today that Turkey will increase exploratory operations in the Mediterranean. There are presently ongoing territorial disputes with Greece and Cyprus concerning Turkish operations in contested waters. Last week’s collision between Turkish, and Greek warships seems to have cooled tensions for the time being, and forced all of the involved parties to take a deep breath.