• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 4 hours Cpt Lauren Dowsett
  • 2 hours Which producers will shut in first?
  • 20 mins What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 1 min Marine based energy generation
  • 10 hours The Most Annoying Person You Have Encountered During Lockdown
  • 13 hours Pumping Dollar V Pumping Oil Match
  • 4 hours Its going to be an oil bloodbath
  • 5 hours Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 3 hours The idea that electric cars are lowering demand is ridiculous.
  • 4 hours Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 8 hours How to Create a Pandemic
  • 9 hours Natural gas price to spike when USA is out of the market
  • 9 hours Iran-Turkey gas pipeline goes kaboom. Bad people blamed.
  • 20 hours CDC covid19 coverup?

Breaking News:

IEA: OPEC Can’t Save The Oil Market

Alt Text

The Only Logical End To The Oil War

By breaking the oil war…

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




Oilprice - The No. 1 Source for Oil & Energy News