Friday, July 6, 2012

Israel’s Emergence As Energy Superpower Making Waves around the world.

                                                    Full scale map here.


Israel’s Emergence As Energy Superpower Making Waves around the world.(CriticalAnalyst).Back to regular programming. A fascinating and rather optimistic article by Walter Russel Mead in the American Interest posits that Israel looks likely to emerge as an energy superpower in the near future, with all the political ramifications associated with this status.
Israeli Prime Minister Golda Meir famously lamented that Moses led the children of Israel for forty years of wandering in the desert until he found the only place in the Middle East where there wasn’t any oil.But could Moses have been smarter than believed? Apparently the Canadians and the Russians think so, as both countries are moving to step up energy relations with a tiny nation whose total energy reserves some experts now think could rival or even surpass the fabled oil wealth of Saudi Arabia. [emphases mine. -Ed].The prospect of huge oil reserves in Israel comes on top of the recent news about large natural gas discoveries off the coast that have been increasingly attracting attention and investor interest. The apparent gas riches have also been attracting international trouble. Lebanon disputes the undersea boundary with Israel (an act somewhat complicated by the fact that Lebanon has never actually recognized Israel’s existence), and overlapping claims from Turkey and Greece themselves plus both Greek and Turkish authorities on Cyprus further complicate matters. Yet despite these tensions, following Russian President Vladimir Putin’s surprisingly cordial visit last week, Gazprom and Israel have announced plans to cooperate on gas extraction.This suggests at a minimum that Turkish efforts to block gas development in the region will face opposition from Russia as well as from Israel. Gazprom and other Russian companies are also likely to do well in any gas exploration deals developed with the strongly pro-Moscow (and very cash hungry) Greek Cypriot government.The stakes are not small: the offshore Levantine Basin (which Syria, Lebanon, Turkey, Greece, Cyprus, Israel and even Gaza will all have some claim to) is believed to have 120 trillion cubic feet of natural gas and “considerable” oil. Drillers working in Israeli waters have already identified what look to be 5 billion barrels of recoverable oil in addition to over a trillion cubic feet of gas. (US firms were involved in these finds.) Israel’s undersea gas reserves are currently estimated at about 16 trillion cubic feet and new fields continue to be rapidly found.
The new Israeli-Russian agreement is part of a conscious strategy by the Israeli government to use its nascent energy wealth to improve its embattled political position. With Italy reeling under the impact of big wrong-way bets on Iran, Rome may also begin to appreciate the value of good ties with a closer and more dependable neighbor. Another sensible target for Israeli energy diplomacy would be India: the two countries are already close in a number of ways, including trade and military technology, and India is eager to diversify its energy sources.
Gas is one thing, but potential for huge shale oil reserves under Israel itself, however, is a new twist. According to the World Energy Council, a leading global energy forum with organizations and affiliates in some 93 countries, Israel may have the third largest shale oil reserves in the world: something like 250 billion barrels. [...] If the estimates of Israeli shale oil are correct, Israel’s gas and shale reserves put its total energy reserves in the Saudi class, though Israel’s energy costs more to extract. Many obstacles exist and in a best case scenario some time must pass before the full consequences of the world’s new energy geography make themselves felt, but if production from the new sources in Israel and elsewhere develops, world politics will change.
[...]
the ability of the Arab governments to influence political opinion in Europe and the rest of the world is likely to decline as more oil and gas resources appear — and as Israel emerges as an important supplier. We could be heading toward a time when the world just doesn’t care all that much what happens around the Persian Gulf — as long as nobody gets frisky with the nukes.
Another big loser could be Turkey.
[...]
But if Israel really does emerge as a great energy power, and a Russia-Greece-Cyprus-Israel energy consortium does in fact emerge, Turkey will feel like someone who jilted a faithful longtime girlfriend the week before she won a huge lottery jackpot. More, Turkey’s ambitions to play a larger role in the old Ottoman stomping ground of the eastern Mediterranean basin will have suffered a significant check.
If the possibility of huge Israeli energy discoveries really pans out, and if the technical and resource problems connected with them can actually be solved, the US-Israeli relationship will also change. Some of this may already be happening. Prime Minister Netanyahu’s evident lack of worry when it comes to crossing President Obama may reflect his belief that Israel has some new cards to play. An energy-rich Israel with a lot of friends and suitors is going to be less dependent on the US than it has been — and it is also going to be a more valuable ally.
[..]
An Israel with vast energy endowments may be less coolly received in certain circles than it is today.
In the meantime, we wonder if there was an 11th, hitherto undiscovered commandment on those tablets at Sinai: Thou shalt drill, baby, thou shalt drill.
I hope Mead is not being overly optimistic, and pray that his words go from his keyboard to G-d’s ears.
Happily, I found several articles supporting Mead’s proposition.
Arutz Sheva: Israel is capable of producing 250 billion barrels of oil according to Dr. Harold Vinegar of Israel Energy Initiative Ltd.
Bret Stephens in the WSJ also quotes Dr. Vinegar and remarks upon the possibility of the delicious irony of Israel becoming an oil giant.
The Jerusalem Post reported back in March on how Israel could revolutionise the global energy market, not only thruogh its oil and shale reserves but through its technologically creative, ecologically-sound shale extraction methods.
And in case anyone is worried about the Palestinians making a grab for Israel’s shale oil,Israel Matzav reports that “G-d has the last laugh” as there are virtually no shale deposits in Judea and Samaria.
Israel as an energy superpower? It’s the epitome of cognitive dissonance. May it come speedily in our days, Amen.
Hmmmm......The word that came to Jeremiah from the Lord: "Thus says the Lord, the God of Israel: Write in a book all the words that I have spoken to you. For behold, days are coming, declares the Lord, when I will restore the fortunes of my people, Israel and Judah, says the Lord, and I will bring them back to the land that I gave to their fathers, and they shall take possession of it." ~ Jeremiah 30:1-24.




                                          So G_d isn't an Englishman after all?

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