Turkey is an increasingly important transit hub for oil and natural gas supplies as they move from Central Asia, Russia, and the Middle East to Europe and other Atlantic markets, APA-Economics reports citing to U.S. Energy Information Administration (EIA).
The country is strategically located at the crossroads between the oil-rich former Soviet Union and Middle East countries, and the European demand centers. The Turkish Straits are home to one of the world's busiest chokepoints, through which more than 2 million b/d of crude oil flowed in 2015.
As of January 1, 2016, the Oil & Gas Journal (OGJ) estimated Turkey's proved oil reserves at 312 million barrels, located mostly in the southeast region of the country. In 2015, Turkey produced an estimated 62,000 b/d of petroleum and other liquids, accounting for about 7% of Turkey's oil consumption.
Moreover, in 2015, the port of Ceyhan handled more than 650,000 b/d of Caspian crude oil exports and more than 400,000 b/d of Iraqi crude oil exports, most of which were destined for Europe.
Turkey has a strategic role in natural gas transit because of its position between the world's second-largest natural gas market—continental Europe—and the substantial natural gas reserves of the Caspian Basin and the Middle East.