We Need To Implement Different Infrastructure Projects

Minister Bayraktar answered Al Jazeera writer Kemal Öztürk's questions about the agenda.

Our Hope is Permanent Peace

Evaluating the tension in the Strait of Hormuz, Minister Bayraktar pointed out that the world is facing a great crisis. Stating that there is a need for 103 million barrels of oil every day in the world, but the opportunities to offer it are currently limited, Minister Bayraktar said, "Because the crossings are closed in the world's most important oil supply location, the Hormuz Strait. There are 20 million barrels missing. Therefore, we live in a world where we try to find a solution to this. With the ceasefire that started today, our hope that the situation will change has increased. There is a decline in oil prices and this will come to an even better place when the transitions start. Our hope is to achieve lasting peace," he said.

A New Energy Architecture

Pointing out that there are two important pipelines in the region where the crisis is experienced, one is the pipeline that carries Saudi Arabia's oil from east to west and the other is the pipeline that brings 1.8 million barrels to the Port of Fujairah in the United Arab Emirates, Minister Bayraktar said, "Imagine that these pipelines do not exist. I say this for this: Diversification has become more important than ever. Without these, the world could have faced a much more devastating crisis. The important lesson we will learn here is that the crisis is forcing us towards a new energy architecture," he said.

The Price Side Has Affected Everyone

Pointing out that the effects of the crisis are seen differently in the east and west of the world, Minister Bayraktar said, "There is a price effect in the West at the moment. In the east, there is also a problem with the price in supply, that is, in supply. The world has now started to feel the economic impact of the crisis. There seems to be no problem with supply in the West at the moment. But the price side has affected everyone. So, after all, if you try to buy a cargo that will be physically delivered today, you have to pay 140 dollars as a barrel price. This price can go higher and find 200 dollars. Of course, such a scenario is the most unwanted scenario. In such a case, the world economy may enter a recession on a global scale again. Both economies shrink and we live with high inflation. The end of this can be a devastating result for the whole world, unfortunately. Therefore, everyone wants this to be over as soon as possible. We hope that the ceasefire will return to a permanent peace," he said.

We Have Become An Important Central Country In The Region

Explaining that Türkiye has been making a tremendous infrastructure investment for many years, Minister Bayraktar said, "In other other words, we have made huge investments in Türkiye with the strategy of pipelines, storage facilities and diversification. Of course, we have a basic goal: To ensure the energy security of our country. There is a population of 86 million in our country, there are 34 million vehicles, everyone needs electricity 24/7. We make all our investments primarily to meet these needs. But with both our geographical location and the presence of world oil and natural gas reserves in our region, with these infrastructure investments and geographical location, we have also become an important central country in the region. Look at our map, we have two main pipelines, we buy natural gas from Russia with Blue Stream and Turkish Stream pipelines. Apart from that, there is an entrance to Türkiye from two points from Azerbaijan, there is an entrance from Iran. Therefore, Türkiye supplies natural gas with natural gas pipelines. In addition to these, we have built natural gas storage areas in many places. We have increased the capacities of our connections with Europe. We started to give gas to Syria via Kilis very recently. With our integrated connections, we have made a huge infrastructure investment in electricity, natural gas and oil with our neighbors. With so much infrastructure, you can bring approximately 80 billion cubic meters of natural gas to Türkiye today. We can bring it by ship, we can bring it by pipelines. We have a capacity more than our consumption. We have the opportunity to sell the difference to our neighbors; Bulgaria, Greece to all of Europe. This region also needs gas. Automatically, this situation puts us in a central position in energy architecture," he said.

3 Suggestions

Minister Bayraktar said, "With this crisis, we say the following to the region: it went there with this crisis where the need for a new energy architecture. When a political decision is made, there should be new lines that can be made technically and need to be made commercially. We have three suggestions: First, a subject we have been talking about for years, it is necessary to implement the travel of Turkmen gas to Türkiye and Europe via the Caspian. A project that should be one hundred percent. Secondly, it is very important that the Iraq-Türkiye pipeline is extended to Basra. Also, this is important not only for Türkiye and Iraq, but also for the construction of this oil pipeline for the world's global markets. Thirdly, the natural gas pipeline from Qatar to Türkiye is a project that should definitely be built. It would be a big project to reach Türkiye via Saudi Arabia, Jordan and Syria. It is a technically and commercially made project. In other words, the most important thing the world and this region should do is diversification in energy architecture. We need to implement different infrastructure projects. These proposals are important projects that will reduce the energy crisis we are currently experiencing in the world," he said.

The Cost Of One Dollar Increase To Us Is About 400 Million Dollars

Evaluating the cost of the crisis to the Turkish economy, Minister Bayraktar said, "The cost of a one-dollar increase in the price of a barrel of oil is about 400 million dollars. So, its financial burden is huge. We are a big country with a serious consumption. When you look at it from a financial point of view, that is, if there is an average oil price of around 100 dollars this year, it seems that the approximate additional cost to us on the oil and fuel oil side will be at least 13-14 billion dollars. The cost on the natural gas side can also reach 7-10 billion dollars. We are talking about an issue that will have an additional burden on Türkiye. We do not see any risk in the short and medium term in the current picture. But we don't know how long this will last, whether there will be more different things, if there will be more different supply cuts. The current ceasefire turns into a permanent peace and we think that the effect will be limited if prices reach a reasonable level," he said.

We Fill Our Natural Gas Tanks

Noting that the tanks in natural gas are 72 percent full, Minister Bayraktar said, "This rate is 28% occupancy in Europe. We are currently continuing to fill our warehouses. Here, we both take into account the supply security and calculate the pricing, that is, the economic effect of this. More than 50% of our crude oil tanks are full. 10% of our oil needs come from the Strait of Hormuz, which is a manageable rate." said.