Sunday, June 19, 2011
Apparently, Israel isn't only rich in natural gas.
The above map shows huge deposits of shale oil located in Israel...at least 250 billion barrels of oil in Israel’s Shfela basin, comparable to Saudi Arabia’s entire reserves of 260 billion barrels of oil. And some experts believe there may be double that amount available.
( h/t Joshua's Army member Louie Louie for the vid)
An American consortium named IDT owns the Shfela concession through its subsidiary, Israel Energy Initiatives and now has a team in place that includes Lord Jacob Rothschild, hedge fund investor Michael Steinhardt, Rupert Murdoch, former president of Mobil Oil Eugene Renna, former president of Occidental Oil Shale Allan Sass, and the former president of Halliburton Dick Cheney, all of whom are not only savvy investors knowledgeable when it comes to oil but long time Zionists and friends of Israel. Legendary oil man Harold Vinegar is also part of the team, Shell Oil’s former chief scientist with some 240 patents to his name who revolutionized the shale oil industry.
Vinegar was a key player in making the extraction of shale oil environmentally friendly and far more profitable. The heat needed to extract the shale from the rock is provided by natural gas, which Israel, just by coincidence, also has in abundance. The new technology provides oil at about $35-$40 a barrel, produces greenhouse gas emissions less than half that from conventional oil wells and does not use water.
The geopolitical impact is also not without interest.
Right now, Russia has an iron grip on all of the natural gas pipelines coming from Central Asia into Europe, and both China and the EU are deferential to OPEC regimes like Saudi Arabia, Iran, Venezuela and the Sudan because they desperately need the oil.
The ability of Israel to export natural gas in large quantities to the EU in the next year or so is going to break the gas stranglehold and change the political climate in Europe towards Israel significantly. And as Israel's shale oil comes online, expect China and India, both of whom Israel already has significant commercial ties with to want a share of the action as well.
Unlike the gentleman in the above video, I don't expect the 'Palestinians' to peacefully enjoy a little piece of the action from increased trade, especially since the 'Palestinians' now have a de facto boycott on Israeli-made goods. In fact, I expect one cost of doing business is going to be protecting the shale oil and the offshore gas facilities from terrorist attacks. But then, the Israelis are used to that and should be able to cope.
Imagine a world in which OPEC no longer has a stranglehold on the world's economy, and where low cost energy promotes prosperity globally.