Wednesday, June 13, 2012


We’ve Got Gas

And we’ve got it ahead of schedule!

(Reuters) - A U.S.-Israeli consortium began supplying Israel with natural gas from its offshore Pinnacles well on Wednesday to help stave off a national energy shortage expected this summer.

Israel lost about 40 percent of its natural gas supplies in early 2011 when saboteurs in the Sinai peninsula began attacking the pipeline that carried gas to Israel from Egypt as part of a 20-year deal. In April, Egypt officially terminated the deal, sending Israel scrambling to find alternative power sources.  (The Reuters reporter fails to mention the repetitive blowing up of the supply pipeline by Egyptian terrorists, which also cut off supplies to Jordan and Syria as they get it farther down the pipe after it passes through Israel.  The report also fails to mention the impact to all the foreign investors in that pipeline, losing any possibility on return for investment with the cutting off of the foreign buyers.)

As a result, the Israeli government instructed all exploration groups in its economic waters, where large reserves of natural gas were recently discovered, to speed up operations.

Texas-based Noble Energy, which leads the Pinnacles group, said they were starting to supply Israel with 150 million cubic feet of gas per day almost a month ahead of schedule.

"Though limited in resource size, this well will provide much-needed gas production rate just in time for the hot summer months," the company said in a statement.

The new supplies will replace more expensive and dirtier fuels Israel has had to turn to, like diesel and fuel oil, and save the economy about $170 million this summer, Noble said.  (Looking forward to lowering of electricity rates here in Israel…a man can hope, can’t he?)

(Globes of Israel) The Pinnacles field is one of Yam Tethys's two satellite fields, which are being developed as stop-gap measures, due to the depletion of the Mari B well, until the Tamar gas field, also owned by Delek and Noble Energy, together with Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and Alon Natural Gas Exploration Ltd. (TASE: ALGS) comes on line next year.

The Pinnacles field will save Israel NIS 650 million this summer alone. The natural gas will provide environmental benefits through improved air quality and carbon dioxide emissions reduced by over 250,000 metric tons over the summer months. The field cost $105 million to develop.

Producers will receive $5-6 per million BTU for this gas, and because the gas will replace fuel oil for electricity generation, fuel cost savings to Israel will be about $13 per million BTU. Project schedule was another Pinnacles challenge; each day of delay cost Israel NIS 7 million and three million kilograms of carbon dioxide emissions. The Pinnacles was among the fastest development projects in the industry, taking only ten months from approval to subsea installation.

Noble Energy owns 47.1% of the Pinnacles field, and Delek Group owns 52.9%, through Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L).

Noble Energy Mediterranean VP Lawson Freeman said, "We are excited to bring the Pinnacles well on line. With time of the essence, Noble was able to utilize rigs from our Mediterranean drilling program and deploy subsea equipment from our other global projects. We are also pushing hard to accelerate the Noa development in the same way."


  1. Really nothing to get excited when you view the facts. Time Israel began to living in harmony with the Land.
    In areas where oil and gas development is prevalent, air, water and soil resources can become contaminated with oil and gas wastes and byproducts. Read about the primary pathways for contamination.

    Citizens commonly report that drilling and production activities contaminate water wells, surface waters and soils surrounding well sites; and that air emissions from drilling sites, well heads, compressor stations, pipelines and other oil and gas field infrastructure contribute to air quality concerns.

    Water Pollution

    * Hydraulic fracturing is a practice that may involve the injection of known toxic chemicals into or close to drinking water supplies.
    * Storm water runoff during construction or runoff from established well pads can introduce sediment and toxic chemicals into nearby rivers and streams
    * Storage and disposal of drilling and production wastes in pits can contaminate groundwater and surface waters

    Air Pollution

    * A variety of air contaminants are emitted throughout the oil and gas development process. If you think oil and gas production does not affect air quality, THINK AGAIN.

    Soil Pollution

    * Oil and gas industry wastes, which may contain petroleum hydrocarbons, metals, naturally occurring radioactive materials, salts and toxic chemicals, have the potential to cause soil pollution, and prevent the growth of vegetation.
    * Produced water, which may contain high concentrations of salts and other contamiants, is often stored in pits or disposed of in evaporation ponds. Spills of produced water can kill vegetation and sterilize soils.
    * Contaminants that enter the soil do not necessarily stay put. They can move down through the soil and contaminate groundwater, or up through the soil and be released to air. Learn about the subsurface transport of oilfield wastes.

    For more information:

    * Chapter 1 of Oil and Gas at Your Door? A landowner's guide to oil and gas development contains general information on contaminants associated with oil and gas development.
    * OGAP summary of Colorado oil and gas industry spills.
    * Read about oil and gas chemicals and health

    OGAP Fact Sheets

    * Oil and Gas Pollution: Contaminants associated with the various stages of oil and gas development
    * Think Again: Air pollution from oil and gas facilities
    * Pits: Contamination and regulation issues
    * Fracking: a brief look at the issues

  2. These are little/ big stories about how Divine Providence works here in Eretz Yisrael. Two or three years ago no one knew that these gas wells offshore even existed. Then they were discovered even while Israel was still getting gas from Egypt. So the refuah came even before the crisis with Egypt cutting off supplies came to fruition. Baruch HaShem for all of his kindnesses.


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