Israel's Netanyahu defends gas deal in rare Supreme Court visit
Israel's Netanyahu defends gas deal in rare Supreme Court visit
By Steven Scheer
JERUSALEM (Reuters) - Prime Minister Benjamin Netanyahu told Israel's top court on Sunday the country must forge ahead with developing a large natural gas field, with billions of dollars worth of potential exports, for both economic and security reasons.
In an unusual step for an Israeli prime minister, Netanyahu testified, at his own request, in the Supreme Court to defend a framework gas deal after opposition parties and non-government organizations filed petitions to block plans to develop the Leviathan field off Israel's Mediterranean coast.
Critics, including the anti-trust authority, have argued that planned control of the country's gas reserves by one consortium will limit competition and keep prices high.
Under the deal, Texas-based Noble Energy and Israel's Delek Group, which discovered Leviathan in 2010, would retain control of the field but are being forced to sell other, smaller assets such as the nearby Tamar field that began production in 2013.
Netanyahu argued the blueprint provided major opportunities for Israel's foreign relations and that any delay in its implementation could lead to the deal's collapse and cause "long-term significant damage" to the country's security and economy.
Holding estimated reserves of 622 billion cubic meters, Leviathan will cost at least $6 billion to develop. It is meant to begin production by 2020 and supply billions of dollars worth of gas to Egypt and Jordan, and possibly Turkey and Europe.
Egypt and Jordan are the only Arab states to have signed peace deals with Israel. Gas exports could help shore up ties between Israel and its neighbors to the east and south.
"There is no realistic alternative to the gas deal," Netanyahu said. "If we reverse course, we will fall into the chasm once and for all."
After years of political infighting Netanyahu signed a framework deal that gave long-awaited approval for Leviathan's development.
Netanyahu had defended the deal in an affidavit to the Supreme Court last week and requested appearing in front of the judges before they make their final, binding ruling.
Last year, parliament narrowly approved the deal but the anti-trust commissioner resigned in protest. The deal still needed anti-trust approval or for the economy minister to sign a waiver to bypass the Anti-Trust Authority.
The minister, Aryeh Deri, refused and ultimately resigned and Netanyahu took over as economy minister. In December, he invoked a never-before-used clause in the anti-trust law that allows for decisions of the Anti-Trust Authority to be overridden in the name of security and international diplomacy.
Last month, the Leviathan partners signed a deal to sell $1.3 billion of gas over 18 years to Edeltech Group and its Turkish partner Zorlu Enerji for power plants they plan to build in Israel.
Other deals with Jordan and BG are pending while Israel is in talks with Greece and Cyprus to build a natural gas pipeline to Europe.
It is not immediately clear when the Supreme Court will hand down its ruling.
http://news.yahoo.com/israels-netanyahu-defends-gas-deal-rare-supreme-court-163311350--finance.html
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Critics, including the anti-trust authority, have argued that planned control of the country's gas reserves by one consortium will limit competition and keep prices high.
Under the deal, Texas-based Noble Energy and Israel's Delek Group, which discovered Leviathan in 2010, would retain control of the field but are being forced to sell other, smaller assets such as the nearby Tamar field that began production in 2013.
Holding estimated reserves of 622 billion cubic meters, Leviathan will cost at least $6 billion to develop. It is meant to begin production by 2020 and supply billions of dollars worth of gas to Egypt and Jordan, and possibly Turkey and Europe.
Egypt and Jordan are the only Arab states to have signed peace deals with Israel. Gas exports could help shore up ties between Israel and its neighbors to the east and south.
So would you say this is a good thing or do you think there are drawbacks and possible adverse impacts to the global community and/or elsewhere?
I would be hard pressed to find any kind of action in that part of the world that could be viewed as perfect. It is a good thing, AND there are drawbacks. I believe that the good things (peace between a growing number of countries in the region) are durable with the advent of new, large business relationships. I believe that it is extremely difficult to control the price of an extremely plentiful commodity, such as natural gas. Price controls are not durable in today's world market (e.g. oil). At this point, I believe that the possibility of more peace and stability trumps the possible pitfalls. I believe the pitfalls can be continually addressed.
Interesting. So, I had heard that the Saudi's were currently in a price war and that they were having to divert revenue from their economy to support the low prices for the purpose of driving out the competition. If the Saudi's continue to subsidize the pricing they are looking at hurting their own economy. Would Israel's natural gas development play into this price war eventually? I'm not a big fan of Mr. Netanyahu and my dislike for him has impacted my view of Israel as a whole so I'm trying to set aside my feelings towards him and look at Israel separately. Buzz get's mad at me when I let my emotions drive my opinion.
Would Israel's natural gas development play into this price war eventually?
Oil and natural gas are different commodities, subject to different price pressures as they are given to different uses.
I'm not a big fan of Mr. Netanyahu and my dislike for him has impacted my view of Israel as a whole so I'm trying to set aside my feelings towards him and look at Israel separately.
This is your article. You have an obligation to moderate the discussion. If you can't do that, perhaps you should lend greater consideration to the content you purvey.
Buzz get's mad at me when I let my emotions drive my opinion.
If you allow your emotions to drive your opinion, you are compromising the efficacy of those opinions.
Buzz gets mad because he cares.
Thank you
This is a huge net plus and should move forward.
I'll answer that as soon as you explain how many square meters are in a cubic meter ...
Is it nine?
your comparing 2 dimensional to 3 dimensional...Don't think it can be done.
Closer to infinite.
And, reviewing the question, we were asked to EXPLAIN the answer, not just give it.
And for that reason, I'm out.
I explained it.
Only 6. A square metre is measurable only in 2 dimensions, and there are only 6 measurable 2-dimensional sides to a cubic metre.
That's surface area.
Doesn't matter. That's all that can be determined.
The question was like asking for an exact number for pi. (3.17........ad infinitum)
I'm thinkin' the better answer would be a question : "How thick are these square meters ?"
A question is not an answer, Petey. As it happens, except for the six surface square metres, the interior number included can not be determined, since as you have pointed out, how thick are they?
Just because you voluntarily choose to restrict yourself that is a reflection of your personality ... Answering a question with another question is a time honored tradition in some cultures .
Voluntarily choose to restrict myself? Are you not able to make your point without insulting me?
You don't say ?
Who's buried in Grant's tomb?
Fred Flintstone?
Lol,,,that Fred, always a kidder...!
;^)
I would say it a good thing as far as developing the gas fields. This will give Israel another avenue for income and trade. It will encourage further development/search of gas fields within the borders of Israel.
IMO, the battles within Israel regarding the rights and wrongs of this, will be decided in their legal system.
Trading partners are less likely to go to war with one another than non trading partners. Jordan, Egypt, Turkey and possibly Europe as well as Israel will benefit form this. Iran, Iraq and other countries in the ME are selling oil, why should it be any different for Israel?
Another point is that it may lessen the dependence of Europe on Russian gas. That could be a big plus for Europe and possibly for the U.S.
"That could be a big plus for Europe..."
You mean Europe, that is doing everything it can to destroy Israel? I wouldn't give Europe the back of my hand.
Buzz, that is true, but gas can make strange bedfellows.
This will give Israel another avenue for income and trade.
Ahh, good point. Slid right by.
The people who say that the US should stop giving Israel loan guarantees should support this, as it will result in less need on Israel's part.
''The people who say that the US should stop giving Israel loan guarantees should support this, as it will result in less need on Israel's part.''
BINGO!!!!