The global energy crisis and its possible ramifications - ERDAL TANAS KARAGÖL

The global energy crisis and its possible ramifications

The issue of energy supply security has become one of the most pressing concerns for the world at large; Therefore, taking the necessary measures and making the necessary preparations to reduce the impacts of a potential energy crisis in many European countries is critical as it clearly demonstrates the urgency and magnitude of this problem.

This is because the potential energy crisis threatens to have a significant impact on production, prices, and logistics costs, leading to increased costs in many areas in numerous countries.


The nature of the energy crisis and the decline in natural gas


With the start of the Russian invasion of Ukraine, the inflation caused by high energy prices in many European countries, whose security of energy supply depends on Russia, especially natural gas, has severely affected the monetary policies of central banks due to the observed increase in the rate of inflation.


Just as the increase in energy prices has altered the prices of many products, inflation, caused by the successively increasing logistical costs of distributing raw materials and products between countries, has also led to an increase in interest rates.


Now that energy saving has become a political tool, ensuring the security of energy supply has also become a strategic move. In conjunction with the Russian invasion of Ukraine, Russia used the weapon of reducing natural gas that it supplies to Europe, and completely cutting it off from many European countries that did not accept payment in Russian rubles, as a punishment in exchange for the economic sanctions imposed on Moscow by Europe.


There is no doubt that the supply of natural gas will be discussed more, and will remain on the agenda in the coming period, especially since the demand for natural gas cannot be reduced immediately, and the supply of the required natural gas is not achieved in a short time.


In addition to countries that have natural gas resources, the role of pivotal countries in the security of energy supplies will increase, especially Türkiye, which will contribute to and mediate the transfer of these energy resources to international markets easily.


Türkiye and securing energy supply from natural gas

Türkiye has been trying in recent years to provide security of energy supplies from various sources; In order to reduce the economic burden caused by energy, reduce the current account deficit, curb inflation caused by high energy prices, and reduce dependence on the outside world.

Türkiye continues its natural gas exploration activities, especially in the Mediterranean and other regions, in order to reduce the high level of dependence on the outside in securing natural gas.

It is clearly visible that the resources discovered in the Black Sea are an important strategic step in this period when natural gas has become very important, and its prices reach high amounts and may increase more in the coming periods.

It should also be noted that due to the high prices of natural gas, natural gas exploration activities were previously decided according to the difference between the cost and price of natural gas extraction.

However, it became clear to the eye that the extraction of natural gas is a strategic step because of its great importance in both the economy and the security of energy supplies, especially in light of the high rate of increase in its prices during this period.

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