The discovery of the Tamar gas field followed by an additional discovery at Leviathan transformed Israel's status as an energy producer.
Petroleum and its products supply some 60% of Israel's energy consumption. Approximately 300,000 barrels of oil are used daily, all of which are imported from overseas with only a negligible amount produced locally. To reduce the country's dependence on imported oil and strengthen its economy, the Israeli Ministry of Energy and Water Resources promotes oil and natural gas exploration onshore and offshore.
Until recently exploration efforts were not very successful. However, the discovery of the Tamar gas field in 2009 followed by an additional discovery at Leviathan transformed the country's status as an energy producer and the effect on the economy has been profound. The finds have allowed Israel to become a nation capable of providing for a substantial portion of its energy consumption.
Israel adopted a gas policy which allows the export of 50%-100% of newly-discovered natural gas reservoirs. The first agreement signed will see Israel supply natural gas from the Leviathan field to Jordan's National Electric Power Company. Gross contract revenues are expected to be around $10bn. And the country has pipeline options under consideration to nearby Egypt and Cyprus along with more distant locations such as Greece and Turkey.
At present, the total amount of recoverable gas reserves found offshore Israel is estimated at 900 BCM. These new findings allow Israel...