Why Israel, Why Now?

Israel's emerging energy revolution

There are multiple business opportunities with great potential for high future returns in the thriving Israeli oil and gas industry, which is currently in its early stages of development.

 The Levant Basin

The Levant Basin's enormous reserves have yet to be fully utilized or even explored. According to the USGS, the basin contains an estimated 122 trillion cubic feet (TCF) of undiscovered, recoverable natural gas as well as 1.7 billion barrels of undiscovered, recoverable oil.  

 The Israeli oil and gas market has evolved significantly over the past decade, with two of the top ten natural gas discoveries in the world off the Israeli coast - Leviathan and Tamar, with 18 and 9.4 TCF, respectively. To date, a total of some 28 TCF of natural gas was discovered off the Israeli coast, with the full potential far from realized. 

 Central location

Israel is at a crossroads between Europe, Asia and Africa and connects major international energy routes, a location which allows industry players to expand their activities throughout the region and increase their exposure to lucrative business opportunities.

 The coming months offer a window of opportunity

The growing demand for funding, given the relatively small domestic market, has turned foreign investors into crucial players, as approximately $2.5 billion are required for exploration, with additional dozens of billions spread across the coming decades.

 Thanks to a temporary combination of business and regulatory circumstances, foreign investors investing in the Israeli oil and gas market today will take advantage of unprecedented opportunities: 

•  Discount rates. Some companies have already encountered difficulties in funding exploration well drilling and are offering discount rates for direct holdings in exploration licenses.
•  Expiring licenses and permits. Expiring licenses and permits have forced local players to look outside Israel for investors to meet work plan requirements approved by the Petroleum Registry so they can keep their holding rights in the different assets.
•  Opportunities for agile investors. The export policy will be approved within a few months, and once it is, we fully expect prices to rise due to an influx of money, with major global industry players trying to seize the opportunity. Agile investors may win business opportunities with high profit potential.
•  Stock market opportunities. The Israeli oil and gas market is undervalued compared to similar sized markets around the world.

  Seizing the opportunity

The combination of Israel's untapped oil and gas reserves, its central location and the local temporary regulatory circumstances have all created attractive business opportunities to forge long-term bilateral cooperation between local energy companies and global players.