Know More About Palestine

Sunday Aug. 29, 2010 11:31 AM (EST+7)
Israel gas discoveries set off competition

Read more: energy, natural gas, Mediterranean Sea,, fuel, economy, investment

RAMALLAH, August 29 (JMCC) - The discovery of vast untapped natural gas reservoirs in the Mediterranean Sea have set off competition over the rights to the find, reports the Washington Post.

[T]he initial euphoria over the prospect of energy independence for Israel is being overshadowed by the dispute between Israeli officials who want to increase the state's share of the profits and U.S. and Israeli investors who say the government's stance threatens Israel's status as a safe place to invest.

Some have estimated the value of recent finds by a consortium led by Texas-based Noble Energy at $300 billion. They could represent only a fraction of the natural gas lying beneath the seafloor in the eastern Mediterranean, which, according to the U.S. Geological Survey, might contain one of the world's largest untapped gas reservoirs.

The prospect that Israel might tap more deeply into the revenues has set in motion a commercial dispute between the Israeli and U.S. governments, with the U.S. Embassy in Tel Aviv warning against any rewriting of the rules.

Under current law, Israel would be eligible to claim royalties of 12.5 percent of the value of the gas, along with some additional charges. But Israeli Finance Minister Yuval Steinitz has appointed a committee to determine whether that formula should be changed. A coalition of socially minded Israelis has also launched an advocacy campaign to educate the Israeli public about the billions in profits it stands to lose.

Read the story at the Washington Post...






Al-Madaris St. (same building as
MBC and al-Arabiya studios)
First Floor, Al-Bireh
PO Box 4045, Ramallah
PO Box 25047, Jerusalem 97300
Phone: ++972-2-297-6555
Fax: ++972-2-297-6555
Log in to My JMCC
 or Sign Up
Forgot your password?Close
Front Page
My Comments Photo of the Day
Calendar Hot Spot(for journalists)
Audio of the Day Video of the Day
Most Popular Historical Timeline
Noticeboard Blogs
My Tags Help Desk
User Info
First Name
Last Name
My Tags 
I am a
After signing up,you will receive
an automatically
generated password in your
Recover Password
Submit Your Email
 or Sign Up