Israel's Natural Gas Brings Opportunity, Choices
With natural gas flowing to Israel from the bottom of the sea, the energy revolution is happening while the government delays crucial decisions, writes Idan Grinbaum.
Last weekend, on March 30, it finally happened. Four years after being discovered, gas from the Tamar field started flowing from the depth of the sea to the terminal on Israel’s shore, and with it, hope for a better economic future for the state of Israel. The prime minister was quick to hail the day. The minister of energy followed suit, as did the party's guest of honor, of course, Yitzhak Tshuva, the man expected to pump billions of dollars into his bank account as the owner of the Tamar drill, together with the Texas-based Noble Energy company and Israel’s Isramco.
One cannot overestimate the importance of the Tamar gas for Israel’s economy. Almost every superlative is appropriate in this case. Thanks to this and other offshore gas reserves, Israel will achieve energy independence for the first time in its history and will no longer have to go begging from other countries. Thanks to the Tamar gas, the price of electricity is expected to decline after skyrocketing over the past two years. The State of Israel will make some $20 billion over the next few years, big money that will be managed in a special fund for the well-being of future generations. The growth of the economy will undoubtedly be impacted by the gas flow. The prevailing forecast predicts that already this year, the economy will grow by an additional 0.8% and starting in 2014 by at least an additional percent annually. It will also affect the foreign-currency market because Israel will have to spend far fewer dollars and Euros to buy energy. The trade balance will improve, and the local currency will appreciate even more in comparison with other currencies.
But along with all the praise and festivities expected in the coming weeks — and it seems there will be no shortage of those, as no self-respecting politician will pass up a photo op with Yitzhak Tshuva against the backdrop of the drilling platform, capped by the flame heralding the gas flow — there is also no shortage of criticism, mainly directed at the Israeli government.
On all matters concerning the discovery of natural gas, the former government had sufficient time to adopt decisions and implement them, but due to a leadership failure they were put off and now await the ministers who just recently took office.
