Development of Israel's natural gas resources: Political, security, and economic dimensions

Abstract

The natural gas reserves discovered in Israel in recent years have instigated a debate on sociopolitical, international political, security, and economic issues. Examination and analysis of various policy documents that affected the final consolidation of Israel's gas policy show that the issue of natural gas discoveries in Israel is complex and characterized by many intricacies and uncertainties that create a unique collection of problems and solution. First, there are difficulties involved in setting a time frame for the public policy designed on the topic of natural gas. Second, the work division and interaction between the government, the public, and private companies is particularly complex. Third, the taxation policy must take into account benefits for the state and its residents but at the same time maintain and preserve the incentives offered to investors and developers. Fourth, it is hard to disregard the fact that the Israeli government has chosen not to bring the decision regarding the gas outline for public debate or for review by the Knesset, and fifth, the decision about how much of the gas reserves should be preserved for domestic needs and how much exported is particularly complex.