Sunday, February 6, 2011
Leviathan Oil Field in Israel
The Leviathan Oil Field is a huge strategic find for Israel. Already having problems with their oil-rich neighbors and relying on them for oil, this newly found field could make Israel self sustaining for an estimated 50 years. The field is believed to hold 16 trillion cubic feet of natural gas. Two companies own the field, Delek located in Israel and Noble located in the United States.
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This article is very interesting because of the significance of this find for Israel. With this new oil field, Israel can lower their dependence on foreign oil and the import costs that come along with importing such an expensive fossil fuel. New oil contracts with powerhouse countries such as the United States can mean huge economic opportunities for Israel. This becomes especially important as Israel is one of the few stable allies the United States has in the Middle East.
I always thought that Israel does not have any significant resources and often relies on the United States' financial aid as well as some of the European countries. Since with this discovery, we should expect Israel to cut down their imports of oil and possibly increase the exportation of oil if possible. This would balance the net trade. More economic opportunities never hurt much for Israel as long as there are no political/military confrontations with its neighboring countries. Otherwise, it would simply scare the investors away from developing this oil field.
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