White House Chronicle

News Analysis With a Sense of Humor

  • Home
  • King’s Commentaries
  • Random Features
  • Photos
  • Public Speaker
  • WHC Episodes
  • About WHC
  • Carrying Stations
  • ME/CFS Alert
  • Contact Us

Israel Set To Join the Rich Countries’ Club

January 31, 2011 by White House Chronicle 2 Comments

From Israel, there is good news and bad news.

The good news – and it is huge – is that Israel will soon be awash in natural gas. Gas discovered on the country’s outer continental shelf will turn the country from being hydrocarbon-deprived to being a net exporter.

Indeed, Israel is set to become so rich that it is laying the groundwork for creating a sovereign wealth fund for overseas investments in order to protect the country from inflation and the shekel from getting too strong.

The bad news is that with Hezbollah poised to control Lebanon’s government, Iran has de facto arrived on Israel’s northern border. Even without an Iranian nuclear weapon, this is a grave deterioration in Israel’s security.

Already Lebanon has asked the United Nations to guarantee that Israel does not violate the integrity of Lebanon’s outer continental shelf, where Iran plans to help Lebanon drill for gas.

Geology is about to change the political geography of the world’s most combustible neighborhood.

The two huge gas discoveries are in the Tamar and Leviathan fields. Taken together, the gas reserves are estimated at 26 trillion cubic feet or 10 times larger than Britain’s North Sea discoveries.

Since its creation in 1948, Israel has drilled on land for oil and gas with very little success. While the Arab Gulf countries have found and produced massive quantities of oil and gas, Israel has scrounged in the international markets for its hydrocarbons, including coal. But its isolation has made this difficult and expensive.

In recent years, Israel has bought gas from Egypt. Now Egypt will lose its good customer.

Turkey, Israel’s only Moslem friend until the botched seizure of a humanitarian ship bound for blockaded Gaza, will be affected too. There were plans for a pipeline that would carry gas from Azerbaijan across Turkey and undersea to Israel. That economic boost will not go to Turkey, but instead will probably go to Greece and Greek Cyprus. There have been preliminary discussions between Israel and Greece about shipping gas through Greece–by an undersea pipeline or a liquefied natural gas train–as an entry point into Europe.

Cyprus is a possible export-staging destination, as the Leviathan field, 86 miles off the Israeli coast, is nearby. But Turkish Cyprus, on the north side of the island, is not onboard.

The Tamar field is 50 miles off the Israeli coast and there are two smaller fields, potentially subject to claim by a free Gaza or a Palestinian state.

The gas will change Israel itself. Its defense force will have to defend the gas installations and the miles of pipes, pumps and other infrastructure. Israel has no domestic heating market, so all the new gas bounty will go to electric generation. The government hopes to make Israel the first 100-percent electric car country and the new gas will speed that transformation.

Credit for the Eastern Mediterranean gas discoveries goes to Houston-based Noble Energy. It is the technical leader in a consortium of Israeli companies. Now the world wants in before a whiff of the new gas has come onshore. Gazprom, Russia’s gas behemoth is keen to have a piece as an investment and to protect its European markets.

The Israeli government expects an influx of U.S. and European companies to supply piping, pumps, controllers and construction equipment and materials. It is not just private companies that are salivating: The Jerusalem government has just passed a law to tax gas profits at 62 percent.

Israel’s hostile neighbors want in too. The Eastern Mediterranean is in play in an area where play is rough.

 

 

 

Filed Under: King's Commentaries Tagged With: Eastern Mediterranean, Gazprom, Greece, Greek Cyprus, Israel, Lebanon, Leviathan field, natural gas, oil, Tamar field, Turkey

White House Chronicle on Social

  • Facebook
  • Twitter
  • Vimeo
  • YouTube
The Collision Between Money and News — We Lose

The Collision Between Money and News — We Lose

Llewellyn King

Trillions, as in trillions of dollars, are being bandied about in the way millions were, then billions. But take a look at 1 trillion expressed numerically: 1,000,000,000,000. Awesome, isn’t it? Twelve zeros. The national debt stands at $39 trillion, and the interest on that will top $1 trillion this year. Very soon, the first trillionaire […]

AI Is Interested in You, So You’d Best Be Interested in It

AI Is Interested in You, So You’d Best Be Interested in It

Llewellyn King

AI is everywhere. It is now affecting how people do their jobs and those jobs themselves. The future is clearly with those who have found a way of making themselves indispensable by using AI, and not with those who resist or actively fight it. You may not be interested in AI, but AI is interested […]

The Woman Behind Trump’s Overnight Truth Social Raging

The Woman Behind Trump’s Overnight Truth Social Raging

Llewellyn King

President Trump’s press secretary, Karoline Leavitt, likes to say that his administration is the most transparent in history. Possibly, she is right. That is, if you think letting it all hang out is the kind of transparency Leavitt has in mind. Certainly, it all hangs out in a way we have never seen in Washington. […]

In the Turmoil, Challenges for Graduates in the Class of ’26

In the Turmoil, Challenges for Graduates in the Class of ’26

Llewellyn King

Dear Graduates of 2026, Welcome to the world you will be taking jobs in and where you will begin building careers, and at times shaping history. It isn’t the world of your parents, and it isn’t the world your college has taught you about, because it is changing too fast. It begins anew daily. As […]

Copyright © 2026 · White House Chronicle Theme on Genesis Framework · WordPress · Log in