http://frontpagemag.com/2011/12/20/israels-energy-future/
“The Arab Spring has turned into winter, with Syria a slaughterhouse, tourists in Egypt fleeing chaos and Salafists, and Islamists taking power everywhere, even in Tunisia. Meanwhile, the elements of a Jewish Spring are being quietly put into place – energy security, a new strategic position as an energy exporter, dramatically improved relations with Greece and Cyprus, the prospect of better relations with every country that will buy Israeli gas, and the satisfaction of seeing hostile countries punish themselves in their attempts to punish Israel.”
Energy has always been the weak link in Israel’s thriving economy. Decades of digging and drilling yielded practically no hydrocarbons at all. Israel was forced to spend 5% of its GDP buying fuel from suppliers that did not have its interests at heart, and were often unreliable. At one point for instance, Israel purchased 40% of its natural gas from Egypt. But the pipeline across the Sinai has been bombed so many times there was often not enough time between explosions to get the gas flowing again. Post-Mubarak Egypt desperately needs the money to replace lost tourism revenue, but hatred of Israel trumps all.
The first brightening of this bleak picture came in 1998, when offshore drilling in Israel’s Mediterranean waters got under way. In 2000, a consortium led by Noble Energy of Houston struck commercial quantities of natural gas off the southern coast, west of Ashdod. By 2004, the Mari B field was in full production, with reserves of nearly 1 trillion cubic feet of gas. This remains the only currently producing offshore well in Israel.
But Noble Energy was convinced there must be bigger reserves waiting in deeper waters, and in 2009, diligent exploration paid off in a big way. The Tamar field, with 9 trillion cubic feet of gas, was the biggest offshore gas field found anywhere in the world that year. And the next year, Noble Energy struck it even richer with the 16 trillion cubic foot Leviathan field, further west of Haifa. That was the biggest offshore find of the decade. Together, these discoveries opened up entirely new possibilities. The Tamar field, with enough gas to supply all of Israel’s needs for decades, offered energy security, and the Leviathan field offered energy for export and billions of dollars a year in potential revenues.