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Israel's Emerging Energy Sector

(Energy Policy Information Center) David Wurmser and Jonathan M. Baron - Wedged between Cyprus and the shoreline from Syria to Sinai, the Levant Basin encompasses approximately 32,000 square miles. The first noteworthy hydrocarbon discovery in the area was made in March 2000 offshore Israel west of the city of Ashkelon. This find, which ultimately was determined to contain about 1 trillion cubic feet (Tcf) of natural gas, encouraged additional exploration. In January 2009, a major natural gas discovery was confirmed at the Tamar field within 60 miles of the northern coast of Israel. Beneath approximately 5,500 feet of ocean and another 10,500 feet of sand and rock, Tamar holds a resource now estimated at 8.4 Tcf, which represents the world's largest natural gas discovery in 2009. Even at significantly greater consumption rates, the field should supply all of Israel's domestic natural gas demand for at least 20 years. Tamar, however, may be only the beginning. At this moment, drilling is underway to explore the Leviathan field, estimated to have a 50% probability of holding nearly double Tamar, with the results expected by the end of the month. The total, lifetime financial value of Leviathan could exceed the entire current annual budget of the State of Israel. Moreover, Leviathan is only one of many prospects currently being pursued across the Levant Basin, and the majority of those opportunities are within the equivalent of Israel's exclusive economic zone. An assessment of the Levant Basin published by the U.S. Geological Survey earlier this year estimated a total mean volume of 122 Tcf of undiscovered, technically recoverable gas resources. If exploration at Leviathan is successful, resulting development would make Israel a natural gas exporter, as China and India are experiencing explosive growth and clamoring for energy resources.
2010-12-24 08:23:45
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