A "New York Times" report on Israel's recent natural gas finds describes the history of exploration here by saying, "Few countries had looked so hard with so little result." The article explains that as a result, "obliged to live off their wits, Israelis turned their country into a high-tech haven."
The article lists a slew of challenges that flow from the discovery of the Tamar and Leviathan gas fields, including political tension with Lebanon, royalties policy, fears of Hizbullah missiles, and worries over the impact on the environment. But in addition to all those is the concern that "Israel could blow its windfall and turn into a nation of single-resource slackers."
US geologist Christopher Schenk who was interviewed for the article said that there was little doubt of the area’s enormous gas potential. "Israel’s energy needs will easily be filled for the next generation by the gas, and the country could well become an energy exporter."
The report elaborated on threats from Lebanon's government, quoting Ali Hamdan, an aide to the Parliament speaker, Nabih Berri, saying that Lebanon "will not tolerate violations of its sovereignty." A US official involved in the issue said the Israel-Lebanon land border had not been fully drawn and until it was, the maritime border would remain in potential dispute. A mile one way or the other on the land border could make a big difference in drilling rights.
While investors have driven up the prices of Israeli energy company shares, the excitement, and the sense that the finds may boost the country's diplomatic standing, may be somewhat overdone. University of Haifa professor Brenda Shaffer said that the gas find, if handled right, could make a real difference for Israel’s economy. However, "Qatar is the largest exporter of liquefied natural gas in the world and it has not turned into a major power. Having oil and gas doesn’t solve your problems.”
Published by Globes [online], Israel business news - www.globes-online.com - on August 22, 2010
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