A Leviathan in the Levant

A Leviathan in the Levant

The recent discovery of the Leviathan natural gas field off the coast of Israel, though not a game changer like shale in terms of global gas supplies, promises to have major implications for the country's energy security and even the energy balance of the region at large, while setting off competition over other finds in the Mediterreanean basin.  With political unrest spreading in the region following the ouster of Tunisia’s Ben Ali, the discovery could subtly shift the regional balance of power in Israel’s favor.  The discovery of Leviathan has received significant attention from gas traders, economists, security analysts, and politicians alike, constituting the largest deepwater detection in a decade, and will be enough to supply Israel for the next 100 years.  In addition, the potential to tap up to 4.2 billion barrels of oil means that the interest in Leviathan is high, with growing interest from neighboring countries in the Mediterranean basin. Today’s GR Energy and Climate Brief assesses the impact of the significant oil find off Israel’s coast, both on global energy markets as well as regional political dynamics.

The Regional Dynamics

On 29 December 2010, Noble Energy, as part of a syndicate including Delek Drilling, Avner Oil, and Ratio Oil, hailed the Leviathan gas field off the Israeli coast as a ‘significant natural gas discovery’ with a potential of 16 tcf (trillion cubic feet).  The gas field is located roughly 130 kilometers (81 mi) west of Haifa in waters 1,500 meters (4,900 ft) deep in the Levantine basin, a rich hydrocarbon area. 

Full article here.