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Israeli Gas Find Portends Security But Not Exports

(Reuters-Washington Post) Tova Cohen - Israel can look forward to long-term energy security after the discovery of a huge offshore natural gas field, but obstacles lie in exporting its output, experts said Thursday. "It's not a great time for Israel to enter a lot of the markets," said Brenda Shaffer, an energy expert at the University of Haifa. "European consumption is going down, new suppliers are coming on. I'm not sure there's a buyer waiting by the door at this point." Shaffer noted that larger amounts have been discovered onshore, where it is also cheaper to produce than in deep water. Israel, Shaffer said, needs to develop technologies to expand the use of natural gas beyond generating electricity and into transportation and chemicals. The gas at the Leviathan prospect, 80 miles from Haifa, will give Israel, which has always been dependent on imports, long-term energy security. Amir Kahanovich, a macroeconomist at the brokerage Clal Finance, estimated that the gas at the site could be worth $95 billion.
2010-12-31 08:43:57
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