Israeli Oil Could Have a Bigger Impact Than Gas

May 15, 2011 by  

The Jerusalem Post reported this week on an assessment from the Swiss based financial services giant UBS, that a significant oil find could have a greater impact to Israel’s economy than the recent massive natural gas discoveries offshore.

UBS analysts, Roni Biron, Ziv Tal and Reinhard Cluse wrote in a report on the Israeli gas and oil sector that: “Our calculations suggest that, in the event of success, oil could potentially deliver a boost to GDP growth, the budget and the external balance that might potentially be even bigger than the impact from natural gas.

“This would also imply a larger appreciation potential for the shekel and an even greater requirement to manage the resulting macroeconomic challenges through a carefully managed sovereign-wealth fund.”

Simply put, UBS analysts are saying that discovering oil could mean more to Israel’s economy, trade balance, domestic budget, value of the shekel and long term national wealth than the recent gargantuan offshore natural gas finds that will make Israel both import independent and a major exporter. Not to mention (they didn’t) that being oil and gas independent would add significantly to Israel’s national security.

The UBS analysts reminded readers that the Leviathan and Tamar fields were the world’s largest gas discoveries in the past decade, that Tamar would be sufficient for all of Israel’s domestic needs, making Leviathan available for 100% export. They reported, “natural- gas exports from the Leviathan field will begin in 2017 at almost $3 billion per year, before rising to almost $6 billion in 2020.”

$6 billion per year from natural gas exports – that’s significant! What’s more significant is that the UBS report was about how a oil could have a greater impact.

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Comments

17 Responses to “Israeli Oil Could Have a Bigger Impact Than Gas”

  1. TH White on May 15th, 2011 10:27 am

    I do believe that soon Zion Oil will bring forth the “Blessings of the deep”, thru the LORD GOD of ISRAEL. ISRAEL will most assuredly be Blessed.

  2. Ron Carbone on May 15th, 2011 10:39 am

    I would really llike to make a sizable investment In Zion Oil and Gas however they have been drill for over 4 years with no oil in site….From What I haard from the Texas Crew who were at my church last year , they stated they feel the riches oil fields ever will be in the the valley of Armageddon. Please give me some updates on the progress in this area……

  3. C.V. Dollizon on May 15th, 2011 11:47 am

    Press on! You are in the Will of God my brothers! Truly, according to His Word, YHWH Elohim will bless Israel exceedingly! BUT Russia (Magog) has keeping her eye on this tiny spot of land ever since! Because of this great FIND, the scriptures will be fulfilled, that Russia and her allies will take a spoil in Israel in the near future. Who are her allies? Iran, Etiopia, Libya, Turkey and Armenia. These are the five-enemy-nations against Israel with Russia as their leader. They will perform a “blitz” or a sudden aerial attack on Israel. But it won’t take long—it is even shorter than the 1967-six-day-war! If you ask my opinion to how long this war will be: only a two-day confrontational war! In this process Israel is off handed–she doesn’t know that these enemies mentioned above will attack her! That’s why God will fight for her, that He might be sanctified among His people and the peoples of the world! God will use the natural elements, viz., a torrential rain, earthquakes, hail, etc., to defend His chosen people–Israel. If you believe this then you can see and prove it by yourself by reading the book of Ezekiel in chapters 38 and 39. God’s Word will not lie! “Heaven and earth shall pass away but my words shall not pass away” (Mat. 24:35). But the good news is this: Israel will come out victorious in this very short– ‘I don’t even call it war!

  4. Alfonz Shmedlap on May 15th, 2011 1:08 pm

    Su., 05/15/11 common era

    May the day soon come when former Saudi oil sheiks become gas station attendants. (Abdul, check the tire pressures, coolent level, and brake fluid, please.)

  5. MARY BYRD on May 15th, 2011 1:57 pm

    THANKS FOR THE UPDATE MR SPILLMAN. I CELEBRATE ISRAEL’S VICTORIES, INSPITE OF WHAT THE ENEMY IS TRYING TO DO. GOD IS CONTINUING TO SHOW HIMSELF STRONG ON ISRAEL’S BEHALF! THE WORD IS TRULY BECOMING FLESH BEFORE OUR VERY EYES! (JOHN 1:14) WE WILL CONTINUE TO PRAY FOR THE PEACE OF JERUSALEM. BE BLESSED!

  6. Alex Babchin on May 15th, 2011 2:16 pm

    Currently State of Israel imports 13 millions metric tons of crude oil per year. With the price around $100/barrel, the expenditure is over $8 Billions per year. It would be helpful for the domestic economy to cover part of this expenditure by selling natural gas. This scenario is closer to reality, than finding of large liquid pumpable oil reservs within national geographic borders. The real Israeli oil is in oil shale. It is in the form of solid KEROGEN, which should be processed for syntesis of liquid oil. As this process requres up front investment no one hunts for syntetic oil. But this kind of petroleum deposit is here, its location is well known. Relying on Internet information, Jordan purchases equipment for shale oil recovery on large scale. Having this precedent in neighbor country, local interests may get second sought when when Jordan reports oil production.

  7. sjoerd de vries on May 15th, 2011 3:30 pm

    Praise the Lord , that He looks after the apple of His eye, Israel !! God bless . Sjoerd

  8. Ben on May 15th, 2011 4:32 pm

    have you made any money for ZN drilling

  9. mark wells on May 16th, 2011 7:00 am

    Thanx for update.

  10. Thelma Davis on May 16th, 2011 11:21 am

    Thank you all and the God of Israel. Now even if the USA and other countries turn their back on this tiny land, their God is taking care of them. I have long prayed for oil to be found in their land(Israel) I never believed the Arabs would get rich while Israel struggled to survive, and even though they are so blessed to have done so in such an inovative way, I knew the God of Israel still takes care of them(Israelies)

    Keep up the good work and be blessed.
    Sincerely, Thelma Davis

  11. Ken Gentry on May 19th, 2011 9:21 am

    Way to go Jesus….show out!

  12. admin on May 20th, 2011 4:59 am

    Ron Carbone – “The earth is the LORD’S, and all it contains, The world, and those who dwell in it.” (Psalm 24:1) Invest where He directs you to invest. Zion has drilled geologically deeper than any other exploration well in Israel’s history. They have seen oil at their Ma’anit site – that’s why they continue to drill there. If you think 4 years is a long time, I’d recommend you invest in something like Google; John Brown has been at this for 30 years (with his own money). As the largest oil and gas exploration rights holder in Israel, Zion’s license area includes the Jezreel Valley, also known as the ‘valley of Armageddon’. Re: the ‘Texas Crew’ that was at your church – were they basing their statements on geological evidence or biblical evidence? Have they drilled in Israel before? Have they been to Israel? They may be right, but I don’t believe they have sufficient evidence, either geologically or biblically to make such a statement. It’s a big leap of faith (or assumption) to look at Megiddo’s role in eschatology and decide that ‘the richest fields ever’ will be there. That said, the Jezreel Valley does lie on the ‘Head of Joseph’ and the Bible states, “Let all these rest (the blessings of the deep and of the ancient mountains) on the head of Joseph” (Genesis 49:26). My point is this: Use discernment. Base your actions and statements on the Word of God, His direction, and what you already know to be true (in this case, whatever geology already exists). A lot of well meaning but poorly discerning believers have been conned over the years by smooth talkers with grandiose statements based on not-much. That said, unless your ‘Texas Crew’ is actively exploring in Northern Israel, have studied the Jezreel Valley’s geological and seismological evidence, and have studied Scripture, I’d take their words with the measure they deserve. Zion Oil has done and continues to do all three (their work actually produces the geological and seismological evidence); that’s why I personally listen to their thoughts about where Israel’s oil may lie and how much may be there … and it may be in the Jezreel Valley.

  13. admin on May 20th, 2011 5:02 am

    Alfonse – Regular or Hi-Test?

  14. admin on May 20th, 2011 5:10 am

    Ben – If you’re asking if this blog has helped Zion Oil financially, I don’t know. I guess about as much as it has helped Noble Energy, GIvot Olam, Ginko, Delek or any other company exploring for oil in Israel. My hope is that this blog helps Israel. An oil and gas company ‘makes money’ by producing oil and gas. So in that respect, as a shareholder in Zion Oil & Gas, I hope they make lots of money. But if anyone (including me or Zion Oil) is in this just for the money I suggest they get out. Discovering and producing oil and gas in Israel, for Israel, is a lot more important than making money for an oil company.

  15. Giora on June 11th, 2011 7:48 am

    B. King, a Geologist and an investor guru claims that the Leviathan field has reserves of probably 250 Mill. barrels. It is almost as much as the Saudis claim that they got (260 mill…Back 30 years ago).

    Is there anybody here who can comments on that?

    Thanks

    GZ

  16. Moses on July 13th, 2011 12:01 pm

    I am curious as to how the experts on the Israeli shale fields can state their reserves are potentially larger than the oil reserves of Saudi Arabia? Geographicly speaking how can this be? The size of the shale fields are “small” relative to Israel’s size. Are the shale pits SUPER DEAP and are they pulling oil from an inverted triangle deposit?

  17. angelika dumanski on July 13th, 2011 2:42 pm

    Giora, you will see that the Saudi oil will go up in flames…and Israel will be giveing to the nations…read you bible…Danial,Ezekial,Isa. and more…Israel will lend to the nations,because she will be blessed…..God does not lie….it will come to pass….shalom….angelika

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