For the first time in many years, a new commercially viable oil well has been discovered in Israel. The Lapidot Oil Company recently concluded a drilling in Heletz, northeast of Sderot, and found a deposit of some 750,000 barrels worth of oil. The total worth of the deposit, at today’s inflated prices, is well over $30 million. At present, 60 barrels a day are being produced, but it is estimated that this will increase very soon.

In other Israeli fuel news, Ilan Cohen, Director of the Prime Minister’s Office, decided yesterday to advance the construction of a 28-kilometer sea transport system linking a gas platform to a desalination plant currently in advanced stages of construction. The system will link the Tethys Sea partnership’s gas platform to the desalination plant south of Ashkelon, which will thus be able to operate by means of natural gas as soon as next year.

The use of natural gas is expected to minimize damage to the environment caused by the power plants, and will also lead to a reduction in electricity costs.

The Prime Minister’s Office reports that in 2002, a natural gas field was discovered off the Ashkelon coast; in 2003, a production platform and natural gas sea pipeline were built off the Ashkelon coast to transport the gas to Ashdod; and in January 2004, Ashdod’s Eshkol gas-fired power plant – which produces approximately 10% of Israel’s electricity – began operations. The introduction of natural gas for use in Israel has led to savings of approximately $15 million per annum.

The Israeli electricity sector is expected to complete the transition to natural gas by 2012, when approximately 50% of Israel’s electricity will be produced by natural gas

This entry was posted on Tuesday, September 7th, 2004 and is filed under news.