Israel’s Energy, a game changer

Israel: The Coming Energy SuperpowerPeter C. Glover, The Commentator, April 5, 2013—Israel’s transformation from a land of milk and honey into a land awash with oil and gas money is under way. When the country’s offshore Tamar field finally started pumping domestic natural gas direct to Haifa on the last day of March 2013, it meant that Israel was no longer in the thrall of its Arab neighbours for gas imports. And it also signalled the beginning of Israel’s rise to energy superpower status.

Israel’s Energy MarketEfraim Chalamish, Jerusalem Post, May 8, 2013—The recent off-shore gas discoveries in Israel are game changing. Said discoveries can raise Israel’s Gross Domestic Product, help to reduce national fiscal deficit, position Israel as an independent energy producer and exporter, and improve the country’s geo-strategic status. Yet, this great potential raises significant policy, economic, and political concerns.

Israel, Turkey and GasEditorial, Jerusalem Post, May, 18, 2013—Word is that both Israel and Turkey are seriously entertaining the notion of constructing an undersea pipeline to deliver Israeli natural gas to Turkey and, perhaps, hence to Europe. The Turks reportedly have expressed willingness to foot part of the estimated $2 billion bill. Such pipelines exist elsewhere in the world, most notably from Russia and from Norway.

On Topic Links

The Coming Arab WinterPeter C. Glover and Michael J. Economides, The Commentator, Apr. 8, 2013
OPEC FrackedPeter C. Glover and Michael J. Economides, The Commentator, Mar.10, 2013
Fracking Means a New Middle EastArthur Herman, New York Post, Jan. 27, 2013
May 21, 2013 | 8 Comments »

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8 Comments / 8 Comments

  1. Il will be subjected to “less blackmail” but needs to use her newly found energy with great wisdom.

  2. @ yamit82:

    Yamit,

    In my opinion, Israel needs more than just self-sufficiency with the Shfela Basin oil shale. She needs influence.

    I seriously doubt the 250 billion barrel figure. But let’s assume it provides just 1/10 of that — 25 billion barrels. That would be 1.25 million barrels/day for 54 years. Israel presently uses 230,000 bbl.day, but that is expected to actually drop to 200,000 bbl/day by 2020 due to the natural gas fields. Let’s assume that with economic and population growth that it grows to an average of 350,000 barrels/day over 50 years. That would leave 900,000 bbl/day to export. My gut feel – to maximize the influence – send it to China and India; tell the Euronazis to go f**k themselves.

  3. The best alternative for Israel is to implement Netanyahu’s plan to end the world’s dependence on oil which would mean the end of the Arab Oil Weapon. Very advanced clean energy technologies have existed for years but have been blocked by the U.S government for decades to protect the oil interests.
    See http://www.energysuppression.com
    There is a wealth of energy information on the internet including patent numbers which is being overlooked and ignored. In Israel the task force appointed by Netanyahu are administrators, not engineers. They keep searching for ready-made solutions, which are not readily available. They should, instead, be examining existing technical information and building on that.
    I have been trying to have Israeli officials read this energy information on the internet. So far none are even willing to respond. Just as in the U.S there is a solid wall of closed minds.
    Meanwhile the Arab Oil Weapon continues as does their oil income to help Iran go nuclear. If anyone wants to investigate what is being overlooked I can be reached at bert99@peoplepc.com.

  4. Big multinational oil and gas companies afraid of the Arabs will not touch Israel. Those are the companies with the capital and expertise to do the jobs needed best. We are settling for 2nd and 3rd tier companies.

    To extract in a timely and efficient manner gas and Oil requires not only huge investment in exploration but also corresponding infrastructures.

    Israel has little experience either in making policy or in administering such projects and our politicians are influenced by competing outside influences. not enough to find and be able to extract you need customers and your prices must be competitive.

    It’s estimated that the military cost of protecting the sea rigs and wells will cost Israel$400 million a year. No profits to the Israeli government for many years and the oil and gas companies refuse to help absorb those costs…

    Even if our energy project fail to meet optimistic projections, they will still benefit Israel as we have enough gas and oil reserves that would make Israel totally energy independent and embargo-proof for many decades. It would reduce our cost of primary energy and reduce our current budget deficit, and improve our trade balance while creating plentiful good paying jobs. I would settle for that.

  5. I agree with the two previous comments.
    I would add what I have said before. While it’s obviously great that Israel has found this source of energy, it is far from being self sufficient in energy and of producing enough gas for export. Therefore, all this talk of great wealth and possibilities, is very premature. Especially as Israel struggles with new tax increases, huge deficits and a poor economy. Yordim keep on arriving to Toronto with stories of economic hardship, and yet you guys keep on talking about game changers and billions in new wealth. Something just doesn’t add up.

  6. I am wondering how much of this is hype for investors.
    I was once told that
    “the goose is fattest before it flies”,
    Also,
    “there is many a slip between cup and lip”.

  7. Israel’s natural gas reserves are nice but they are only 26th in the world in reserves. They only have 1/30 the gas of Iran. To have a real game changer the oil shale must pan out.