• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 12 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 3 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 2 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 2 days Modest drop in oil price: SPRs vs US crude inventory build
  • 2 days 2019 - Attack on Saudi Oil Facilities.
  • 2 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 4 days Ukrainian Maidan after 8 years
  • 4 days Peak oil - demand vs production
  • 5 days "How the CO2 shortage is impacting the food and drink sector" - Specialty Food Magazine
  • 5 days NordStream2
  • 5 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
Will Rivian Become The Next Tesla?

Will Rivian Become The Next Tesla?

Rivian Automotive just went public,…

Why Bitcoin’s Energy Consumption Is Worth It

Why Bitcoin’s Energy Consumption Is Worth It

It’s no secret that bitcoin’s…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Israel’s Supreme Court Dashes Netanyahu’s Energy Plans

Critical and unexpected development with one of the world’s largest natural projects the last couple days. With a major court decision putting the future of the development in doubt — in a place that desperately needs supply.

That’s Israel. Where the country’s Supreme Court Sunday dealt a major blow to the advancement of the Leviathan offshore mega-field.

Israel’s government had been working on a development plan for the Leviathan field. Which was discovered six years ago, and eventually found to contain a massive endowment of 20 trillion cubic feet in reserves. Related: Was Russia’s Syrian Campaign Aimed At Turkish Energy Security?

That’s an energy source badly needed in Israel — as well as in neighbouring nations like Jordan, Egypt and Turkey. With Leviathan hailed as a gamechanger for the energy security of this region.

But the development is a serious task. And to get it done, the Israeli government had offered numerous concessions to project owner Noble Energy. Including a 10-year “stability clause” that guaranteed certain aspects of project economics — such as export quotas and taxes.

But Israel’s Supreme Court ruled that such guarantees are beyond the mandate of the sitting government. With the Court saying that today’s officials don’t have the legal right to bind future governments into set fiscal terms. Related: Low Oil Prices Forcing Saudi Arabia To Modernize Economy

That’s a major blow to the project. With financial stability being a critical part of developing any mega-project like this. Simply put, no developer wants to splash out billions on a field — only to find its economic projections blown out the window when terms change for key variables like export levels or government take.

Israel’s Prime Minister Benjamin Netanyahu said the decision causes “severe damage” for the Israeli economy. And he could be right — with Noble Energy saying yesterday that the decision raises the risk of delays with development. Which had been planned to be completed by 2019. Related: ExxonMobil To Strike Biggest Deal Since Oil Bust Started

The courts gave Noble and the government a year to revise the agreement. But there’s little clarity on what form this might take — with Noble officials saying again this week that investment stability is a “minimum condition for project development.”

Watch for announcements on possible next strategies from both the government and the company in order to move this key project forward.

Here’s to risky business

By Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News