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Coming soon: An energy independent Israel

Carl Resnick
SPECIAL TO THE JEWISH STATE
February 26, 2010

There have been no screaming headlines, but it now appears that within a few years, Israel will become an energy independent nation.

In a little over a year, Israel has had at least four major natural gas discoveries off her coast on the Mediterranean. The massive size of the natural gas discoveries may not only allow Israel to eventually become energy self-sufficient (because of the high probability of further gas reserves), but also allow her to become an energy exporter.

The successful gas-drilling consortium has already signed a long-term multi billion-dollar contract with Israel Electric Company. IEC has a virtual energy monopoly in Israel and operates 17 power plants across the nation. Several smaller natural gas users have also signed on to take delivery of the new Israeli gas.

Presently, Israel has some natural gas and buys gas from Egypt under a long-term contract. Egypt has vast natural gas reserves and Israel is a perfect nearby customer. There have been and still are issues in both Israel and Egypt over the sale and use of Egyptian natural gas to Israel.

The IEC power grid in Israel is not connected to any outside source. Israel can't risk being dependant on the whims of others. That is the concern many Israelis have over buying from Egypt.

According to Rand Research, Israel still gets about 70 percent of her electricity from coal-fired power plants. Israel imports all her coal, buying over 11 million short tons of coal from several nations. The exact annual cost was not available, but may be about $1 billion. About 50 percent of the coal comes from South Africa. Rand contends that it is unwise for Israel to be left vulnerable by relying on outside sources for so much of her energy needs.

These recent gas discoveries will allow Israel to virtually cease using coal and/or convert to natural gas at a substantial savings and at the same time greatly reduce pollution. By 2012, Israel also expects to generate about 5 percent of her electricity from new wind turbines in both the northern and southern parts of the nation. Israel is also launching a major solar program to generate electricity. Within a decade, Israel hopes to generate over 20 percent of her electric needs through solar.

Israel does have substantial quantities of shale oil. She presently produces about 9,000 barrels of shale oil daily. Considering that daily nationwide consumption is about 225,000 barrels of oil daily, or about 80 million barrels yearly, that's a drop in the bucket.

Israel produces about 1,000 barrels of oil daily from several small oil fields. Most of Israeli imported oil is converted and used as gasoline for her automobiles. The nation has two refineries that can refine most of her needs. The problem is that the nation spends about $6 billion annually for oil. That is something she can't continue to do.

Israeli petroleum experts now believe that there may be 5 billion barrels of oil to be found in the country. On Dec. 24 of last year, there was an announced oil strike in Givat Olam, a city near Tel-Aviv. Early indications are that the oil find may have been significant. It will take several more months of testing to confirm the size of the discovery. A major recoverable oil field would also be sufficient to change Israel.

Maybe the biggest change to Israel is the Better Place program of Shai Aggassi. Better Place, now with the support of the government of Israel, plans to replace all of Israel's gas powered cars with electric ones. The French carmaker Renault plans to produce the cars. While the details are still being worked out and the infrastructure is being built, there is a realization that Israel may soon be in a position to greatly reduce gas demands to a level from which the potential savings will greatly boast the Israeli economy by allowing billions of dollars to stay in the country. Projections are Israel will import about 1,000 cars a month, with hopes that number will increase as the infrastructure is completed.

The sad part to all this is that too many of the world's oil producing nations have squandered much of their wealth. Instead of creating a better world, much of the money from oil has been used to finance wars of hate and intolerance. Instead of peace, too much of the money has been used for evil.

Maybe the nation most responsible for these problems is the United States. In the last four years, the U.S. has given away a staggering $1.4 trillion for oil. That doesn't even take into consideration our military costs to protect and increase the world's oil supply.

For America, there is no end in sight. Our corn ethanol programs are a dangerous and environmentally harmful farce. With our present energy policy, we continue to squander our wealth and finance wars of hate and aggression against ourselves. We are also financing wars against our allies. We are falling behind in trying to fix our energy problems. We have oil and gas, yet we can't use our resources.

Maybe it's time that Washington looks at Israel and finds out what has to be done. We must become energy self-sufficient soon. America can't lead the world by going broke. There seems to be too many self-appointed guardians that will bankrupt this nation if we fail to take control of our own future.

Carl Resnick is a resident of Raritan and a local businessman.