Israel’s Economy Needs More Natgas To Eliminate Threat Of Pipeline Saboteurs

[King_David]

On Monday, as you prepared to light up your barbecue grills to celebrate Independence Day, saboteurs lit up a pipeline in the Middle East again.

For the third time this year, the natural gas flowing from Egypt to Israel has been cut off. This time masked men stormed a pipeline station, tied up security guards, planted explosives, then ran away and set off them remotely by firing gunshots. (Chuck Norris was nowhere to be found.)


..........................snip..............................

For all the continuing angst of the Middle East, Israel is still among the top third largest economies in the world. And among the largest in the region. Bottom line: Israel needs a new source of gas – and fast.

Fortunately, it has one. The Leviathan offshore field is one of the biggest gas discoveries in the last 25 years – with 16 trillion cubic feet. Our resident geologist and editor of the Energy & Scarcity Investor, Byron King, has been eyeing developments there for some time, because he says the region has all the markers of a major “petroleum system.”


“It has analogues,” he explains, “with other of the world’s best hydrocarbon-rich areas. There are salt layers similar to, but not as thick as, the pre-salt of Brazil. There are structures and stratographic traps, like off West Africa, with oil plays like Angola and Namibia.

In other words, potential on a scale with Brazil’s offshore Tupi find.


http://blogs.forbes.com/greatspeculations/2011/07/06/israels-economy-needs-more-natgas-to-eliminate-threat-of-pipeline-saboteurs/

[pelsar]

1. this is a game changer...

israels gas deposits and its shale deposits (using israeli technology for extraction) will most likely make israel a oil/gas exporter in about 10 years or less......Just as no one touches saudi arabias sex/jew/christian apartheid/12th century regime, or europe goes to war in Libya for its oil, Russia can actually carpet bomb without a word being wasted on human rights, energy exporters play by different rules.

more so, in the end europe will prefer to buy gas/oil from israel rather than iran/Libya, etc...Countries prefer stable sources for their resources and wont have to play "footsie" with those regimes, OPECs influence in the UN and political world will just drop off

Jordan also can join the party using israeli oil shale extraction technology and finally have a resource that brings them a huge income, that too will strengthen the minority regime. Israel and Jordan might even share facilitates (exporting from haifa will be an economic advantage for jordan)


And the Palestinians?...they too will be influenced, but it wont be easy for them and they'll have to do it quickly.....take what they can get now, and get on with their lives, fair or not, things will be changing and it does not fit their fantasy......... The worlds preference for oil will reduce the support from their "supporting states" both financially as well as politically.

I don't think they'll do anything about it, as its rather impossible for them to make such a massive political change, hence they're going to be in shock politically once these changes start happening.....


and the "protest tourism"? (groups that travel the world protesting-its a new category in tourism), won't get much play anymore, as the worlds countries do not like instability in the worlds energy producers, they'll be working closer with israel (as in this latest fotillia experience/airport protests) to limit them.

[Lithos]

2. It is important...

But not at the same scale I am hearing from you. I agree it is a game changer and things will be much more than immediate dependence for Israel. All important, though I have to include several extenuating issues which come into play. First, Lebanon also has a claim to some of the field, same with Gaza - this will cause doubt and instability until they are worked out. Second, we are talking Natural Gas here, not Oil at this point. Natural Gas is not as rare today especially with some major new finds of late. Third, shipping Natural Gas is expensive, especially over distance. This means the most likely consumers for Israeli Natural Gas are going to be the Baltic States and Italy. While important from a regional standpoint it is not the same level of dependence that Saudi Arabia or the other oil states have by any stretch. IMHO, the biggest benefit will be tax and other revenues which will enter into the Israel gov't coffers.

L-

[pelsar]

3. theres shale oil not just gas

thats where the money is:
http://www.ynetnews.com/articles/0,7340,L-4061436,00.html

jordan has shale oil as well....

Lebanon can claim the sky is orange, no one takes their claim seriously.....and gaza is owned by hamas, no one will enjoy giving hamas money to develop a gas field.....

[no_hypocrisy]

4. Ironic. Israel's future dependent upon access to energy/natural gas

and Israel controls the West Bank and Gaza by controlling Palestinians' access to water. Prosperity and survival is wholly dependent upon natural resources.