Israel can convert the gas to liquid petroleum and meet its own needs for petrol, diesel, aviation fuel etc. That could be a load of dollars staying in house.
Plants to convert natural gas pollute,so its problematic.On the other hand its problem to sell this amout of gas to shekels(or $ later converted to shekels),bcs of a duch desease.There is 2 options basicly,or increase internal natural gas consumtion,or sell it abroad and then invest money abroad(norway model).95billion$ worth of natural gas for a country with GDP of around 200b$ is a challenge.Originally Posted by oldsoak
Where there's gas, there might also be oil.
It was said that the aforementioned will eventually drill 3, 4, 5 Km under the sea bed to find oil.
As for petrol, well, Israel already has LPG infrastructure, and companies offering conversion kits for cars and trucks. so..
1) dig
2) extract
3) ?????
4) profit
Gas can be used to produce electricity + Better Place electric cars = win. Or just convert cars to run on gas, again electricity + transportation = win. IMHO AFAIK etc.
Free balloon gaz and mangal for every man, woman and child in the aretz. (Sudanese and Eritreans too.)
Well almost any strategy is good,as long as gas money dont stay in Israel and no polution caused.So in the end we can win energy independence and some small amount of money,but bulk of money cant stay in Israel,so we need to invest them abroad,or face inflation,
I personaly think exporting is way better option,then forcefuly increasing internal consumption.
1.Less inflation burden on economy.
2.Export of gas will be better for diplomatic front.
For 20 to 40 years of production, it gives just 1% to 2% increase of the current GDP.
Just in the passed year the Israeli GDP grew 4.5% without any gas. So I don't see any dramatic changes or challenges for Israeli economy.
1.It works very simple,with growing export/import balance,shekel gain strengh,with result in overal competitiveness loss for real sector of economy.Thats how it works if you export and then transfer money to your economy(exchanging to shekels).
2.If you use forcefuly gas yourself,then it works different.Basicly its the same as giving free money to ppl.It leads to inflation,real sector hurt not from exchange rate,but from rising labor/goods cost.It still better,then 1 option,ofcource if increase in internal consumption is not forcefull,then effect is ok."Not forcefull": demand will remain even after local gas end,meaning industry that use this gas remains profitable without low cost local supply.
So if we take "transfer gas to energy" idea for example,is it economicaly sound without local gas?If no,if for example solar panels are better and the only advantage of using gas is bcs we found it so close,dont do it.
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"Bank of Israel Governor Stanley Fischer is among the leaders and economists expressing concern that the finds may lead to a stronger currency, making the country’s goods more expensive abroad."
http://www.bloomberg.com/news/2010-1...en-shekel.html
Well,anyway i trust Bank of Israel Governor on this even more then myself.
What has been overlooked is that Israel also hold some impressive shale oil rock deposits on its territory. For the better or the worse, considering the pollution associated with shale oil extraction, a pilot project has already been approved in the Judean hill [Link]
Here is the whereabout of the oil shale deposits (in green):
Ah sh!t! I live near the largest deposit, our air is going to get even worse...
Palestinians haven't claimed any of it yet? I am surprised.
Nope, they got the limestone, not the chalk.
anyways, finally came across a good representation of the "dispute" with Lebanon.
Came across this a couple of days ago. I hope it is not a repost. Anyhow, the author claims that the Lebanese claim is not such a big deal for Israel.
Maritime dispute with Lebanon is marginal
Even if the UN were to adopt the Lebanese version of the maritime border, there would be no serious harm to Israel's exploration licenses.
10 July 11 15:56, Amiram Barkat</SPAN>
To judge from the main headline in one of this morning's newspapers, Lebanon is about to seize Israel's natural resources worth billions of dollars with the unexpected support of the US. But reality contrasts starkly with such panic inducing headlines, and is as far from the truth as Cyprus is from Israel. The reality is so far from the media headlines that even the volatile Tel Aviv Stock Exchange accepted the new-old threat to the licenses of Ytizhak Tshuva and his partners with apathy.
... snip ...
However, the entire story has been taken out of all proportion. Even if the UN were to adopt the Lebanese version of the maritime border, there would be no serious harm to Israel's exploration licenses in the region. A professional Israeli source that examined the border route under contention said that it involved the northern extremes of the Alon and Ruth licenses, in the northern part of Israel's licenses region. As far as is known, in these areas there are several structures that might contain gas or oil, but these structures are relatively small, and are not top of the agenda of Noble Energy Inc. (NYSE: NBL) and Delek Group Ltd. (TASE: DLEKG) who own the licenses.
... snip ...
http://www.globes.co.il/serveen/glob...62391&fid=4111
@ beholder,
yes, Norway is a very poor country because of it's fossil resources... not. Money needs to be channelled correctly, if you have too much corruption everything you do makes it worse as each change is an opportunity for more corruption. I don't think Israel is in this dire situation so it *should* work for them too.
Noble energy recently updated their prediction and there's even more gas in this area than reported.
In addition, they possibly found oil at another site called Gal.
http://www.globes.co.il/serveen/glob...did=1000667221
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