Israel's oil imports will total $4.5 billion in 2009, half the total in 2009, according to new report by the Friedrich Ebert Stiftung affiliated Macro Center for Political Economics that was submitted to the Knesset this week.
The report, written by Dr. Amit Mor and Dr. Shimon Seroussi, states that Israel could cut its oil imports by 20%, saving $1 billion a year at current prices, through energy conservation and the sophisticated use of electricity and fuel in more efficient and cheaper ways. Mor and Seroussi are co-CEOs of Eco Energy Ltd., an economic consulting and investment firm.
The report is part of the Senat Project of the Israeli Institute for Economic and Social Research, which publishes weekly working papers on public issues. These papers are distributed to MKs, ministries, economic enterprises, and non-profit organizations.
The report notes a downward trend in Israel's oil consumption, thanks to the reduction of the use of crude oil and diesel to generate electricity with the changeover to natural gas by the Israel Electric Corporation (IEC) (TASE: ELEC.B22), which began in 2004.
Consumption of oil products by Israel and the Palestinian Authority has been falling steadily. Oil consumption was 11.4 million tons in 2008, 2% less than in 2007, and 8% less than in 2003. The report expects this downward trend to continue in the coming years, with the completion of the national natural gas infrastructure and the hook-up of power stations and major industrial plants to the natural gas pipeline.
The current recession also reduced Israel's oil consumption by 10% compared with the corresponding period of 2008.
Macro Center general director Dr. Roby Nathanson, who edited the report says, "Israel is sharing in a global trend that emphasizes the increased use of renewable energy sources and additional sources of gas. Israel imports more than 90% of its crude oil from Russia and other countries of the former Soviet Union, where there are many internal conflicts, a fact that jeopardizes the oil supply. The Senat report points out to the MKs that it is possible to reduce energy consumption by applying a range of methods for conservation and energy efficiency, regulatory and legislative amendments, encouraging the use of fuel-efficient vehicles, and so on."
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2009
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