Turkey's strategic location makes it a natural "energy bridge" between the major oil producing areas in the Middle East and Caspian Sea regions on the one hand and consumer markets in Europe on the other. Turkey's port of Ceyhan is an important outlet, both for current Iraqi oil exports as well as for potential future (by 2004) Caspian oil exports. Turkey's Bosporus Straits are a major shipping "choke point" between the Black and Aegean Seas. Finally, Turkey is a rapidly growing energy consumer in its own right. Turkey has experienced extremely sharp economic growth in recent years, which was largely achieved through a rapidly increasing population. Because of its demographic and economic growth, Turkey constitutes a major energy market. Domestic energy production has not exceeded half of energy demand. The main indigenous energy resource is poor quality lignite. Production of lignite is foreseen to double by 2000 compared with 1995. Crude oil remains the main energy source. In 1995, consumption was 29.3 million tons of oil equivalents. The indigenous oil production in 1995 was only 15%, the rest (85%) being imported. Turkey plans to increase hydropower production in the near future. Natural gas is imported mainly from Russia. In 1995, electricity production reached 86.2 TW h, while in 1971 it was only 8.6 TWh. Electricity production is expected to reach 304 TWh by 2010. The sharp growth of the energy sector has been accompanied by institutional reforms. One of the most important developments has been liberalization of all energy sectors, including electricity production and distribution, to private capital both national and foreign.