Turkey is strategically located between oil-producing countries and countries in need of oil and petroleum products. In other words, Turkey serves as a strategic route for both oil exporters and importers. Because of logistical advantages, Middle Eastern countries and Russia prefer to ship their oil products through Turkey. In addition, the Turkish government has backed pipeline projects that transport natural gas from exporters to importers. At the same time, Tupras, Habas, and Socar, which have all ranked among the top ten exporters in Turkey, have oil refinement and other oil product manufacturing facilities in Turkey, such as LPG production and storage services, as well as ports and highway connections. Although Turkey lacks natural resources, it has a large capacity to process oil and transport a large amount of oil and oil products to importing countries.

A New Situation after the Armed Conflict in Ukraine

The Russian invasion of Ukraine has sent shockwaves throughout the global oil industry. Russia is a significant natural gas producer and supplier to EU member countries and Turkey. As a result, Russia has attempted to use this advantage against NATO member countries in Europe, as receiving natural gas from Russia is easier and less expensive for European countries than other alternatives. After Russia decided to punish NATO member countries and other European countries that supported Ukraine, Europeans are less interested in importing Russian gas. This situation elevates Turkey's contribution to the supply of oil, oil products, and natural gas.

Energy Prices and Entrepreneurship as the Engines of Economic Development

Small and medium-sized enterprises (SMEs) are the engines that propel every country's economic development. SMEs generate the most important development tool for national economies: enterprises. In other words, they help transform local advantages into products that provide competitive advantages in global markets. However, SMEs may be vulnerable to external shocks such as rising energy prices. They require a good environment for improving their productivity and creativity in order for the national economy to be healthy, and local governments can better assist them by creating a suitable development environment for them and protecting them from external shocks.

Rising energy prices are threatening the economic development of European economies, affecting not only households that use natural gas to heat their homes. Access to affordable energy resources is critical for European SMEs. This increases the value of Turkey for European countries as Turkey is an important alternative energy route.

The value of Turkish energy companies will thus increase in the short and medium term. Investing in Turkey's energy industry appears to be a good investment opportunity for most investors at the moment.

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