JPost.com - 09/25/2013 http://www.jpost.com/Business/Business-Features/5-facts-about-Israels-energy-sector-327005
Bank Hapoalims Mani Cohen offers the Jerusalem Post a primer on Israel’s natural gas find.
Superstar
investor Warren Buffett must have been taken aback when natural gas
started flowing to Israel from the Tamar field this year. Buffet
famously said, “If you’re going to the Middle East to look for oil, you
can skip Israel. If you’re looking for brains, look no further”, but
the recent developments of Israel’s offshore gas have turned the
conventional wisdom about Israel’s natural resources on its head.
In 2013, the gas is expected to add an entire percentage point to economic growth.
The
turmoil in Egypt, which had for years supplied Israel with natural gas,
demonstrates the importance increased energy independence plays for
moderating the waves of geopolitical uncertainty in the region. It
would give Israeli industry a reliable, cheap fuel that would bring
down production costs, giving the country a competitive edge.
Bank Hapoalim’s Mani Cohen offers The Jerusalem Post a primer on Israels natural gas find.
1. Gas has been long coming. Gas developments in Israel did not happen overnight.
The
gas development began in 1999-2000, with the discovery of the Noa and
Mari B reserves off the coast of Ashkelon. Mari B has been supplying
gas to the Israel Electric Corporation for the past decade. In 2009,
the Tamar reserve was discovered off the coast of Haifa, containing
about 238 b.cu.m. (billion cubic meters). The following year, the
Leviathan reserve, with 535 b.cu.m. was discovered.
2. There are smaller reserves you’ve never heard of!
Aside from the big fish in the sea, a slew of smaller gas reserves have been discovered.
Among them: Dalit, Tanin (crocodile), Dolphin, Carish (shark) and Samson.
3.
There is plenty to go around. Current estimates put the total gas
reserves at 900 b.cu.m. But Israel looks to only need an estimated 500
b.cu.m. in the coming years.
That leaves plenty for export.
4. Forty percent is heading abroad for now.
In
June, the government approved a 40% (360 b.cu.m.) export limit for the
gas. However, strong opposition still exists on how much should be kept
for local usage, and the decision is headed to the high court next
month. That could change the outlook for how the gas would be divvied
up.
5. Developing gas takes a lot of cooperation.
A
slew of companies have partnered to tap Israel’s natural- gas reserves.
In addition to Noble, the primary developer, the local companies
partnered in the Tamar and Leviathan fields are Avner, Delek Drilling
and Ratio Oil.
This article was produced in conjunction with Bank Hapoalim.
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