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=Energy in Israel and Palestine=

Israel
Natural Gas is a fossil fuel created through the natural application of heat and pressure on plant and animal life, over thousands of years. In most of the world oil accounts for just less than half of the energy used and natural gas accounts for 11 percent. It is estimated, however, that in a few years natural gas will account for 25% of the worlds energy consumption. Since Israel’s creation in 1948 it has been energy dependent on imports from other countries. Specifically, Israel both produces and consumes around 6.86 cubic meters of natural gas per year, leading to the need for it to import another 720 cubic meters of natural gas from outside sources. Historically, Israel has imported its natural gas through the Arish-Ashkelon pipeline in Egypt. Egypt is currently the second largest natural gas producer in North Africa; Egypt signed a natural gas deal with Israel in 2005 which detailed the supply of .057 trillion cubic feet of gas for fifteen years to Israel. It was a 2.5 billion dollar deal. Through this, Egypt supplies 40 percent of its natural gas demand. The Israeli Electric Corporation (IEC), dominates more than 95% of the electricity sector in Israel and controls product distribution and transmission of electricity. The IEC has a natural gas distribution law which aims to regulate the distribution of natural gas in Israel in order to empower market competition. For the reason of a historic reliance on natural gas imports, the 2009 and 2010 discoveries of the Tamar and Leviathan gas fields off the coast of Israel were important discoveries. Judging by their size and amount of natural gas (Leviathan has around 19 trillion cubic feet of natural gas) these two fields could result in a large economic shift, making Israel energy secure for more than 50 years. They could also give Israel the ability to export gas. In 2013 Israel began commercial production of the natural gas from the Tamar field. There are currently plans to pipe the natural gas from the Tamar field through a pipeline in Ashdod, in Israel, and then turn it into liquefied natural gas. This plan is expected to begin in 2017. Similarly, there are plans to begin exploitation of the Leviathan field by as early as 2016.

Palestinian Territories
The Palestinian territories only produce 445 million kilowatt-hours of electricity which meets 10 percent of their demand. Palestinians do not produce oil or natural gas and are almost entirely dependent on the Israel Electric Corporation for electricity, which mainly comes in the form of electricity and petroleum products. The only domestic source of energy they have is the Gaza Marine gas field, which has not yet been developed. The territories in fact do not consume any natural gas, even through imports. However, the potential for gas supplies to reach Palestinian Territories could potentially come from three different sources. The first being the unexploited Gaza Marine gas field. The second source would be from Egypt straight to Gaza, through El Arish, a city in Egypt. Lastly, the West Bank could begin to import gas from Egypt via Jordan. Additionally, Israel has plans to supply the Palestinian territories with natural gas upon the commencement of their production of the Leviathan gas field in 2016. Although there has been conflict in the Palestinian Territories energy demand has grown rapidly, increasing by 6.4% annually from 1999 to 2005. Structurally, the Palestinian Territories do not have sufficient distribution companies or systems, a problem which leads to constraints on electricity efficiency. The West Bank and Gaza receive and consume energy in different ways. Petroleum products are supplied because of agreements between the Palestinian Authority and Israel. The supply of petroleum is centrally located at one terminal on the border of the Gaza strip and two different terminals in the West Bank. These terminals have no capacity to keep petroleum and are therefore used daily. Electricity wise, the West Bank relies almost entirely on the Israel Electric Corporation, while the Gaza Strip receives their electricity from the Israel Electric Corporation, a diesel power plant located in the Gaza strip and Egypt. = Gaza Marine Gas Field = The Gaza Marine Gas Field was discovered in 2000 off the coast of Gaza in water which is legally under the control of the Palestinian National Authority. It is located about 36 kilometers offshore and 2,000 feet below the water. It has around 1.4 trillion cubic feet of gas and an estimated profit worth of 2.4 to 7 billion dollars. . In 1999, the then leader of the Palestinian Authority, Yasser Arafat, made a deal with British Gas (BG), that gave BG 25 years to explore and tap into the oil fields. In 2000, British Gas discovered the Gaza Marine gas field. This oil field has enough energy to supply Palestinian territories with sufficient energy and still have have a surplus for export, making the Palestinian territories more energy independent. After this agreement was signed in 1999, the rights were divided. BG had 60 percent, Consolidated Contractors had 30 percent, and the Palestinian Investment Fund (PIF), under the control of the Palestinian Authority, had the remaining 10 percent. Although there have been many attempts to strike deals with BG to tap into the Gaza Marine Gas Field, it is still unexploited. Two of the main, separate, parties involved in the negotiations have been the Israel Electric Corporation (IEC) and Egypt, who seek to convert the natural gas into liquefied natural gas to export. The gas field remains unexploited for a number of political and historical reasons although when it was first discovered the media coverage projected it to be a subject which could lead to cooperation and negotiation between Israel and Palestine, offering benefits to both parties.

In 2000, BG proposed to supply gas from Gaza to the IEC. IEC refused, claiming the gas from Egypt was more reasonably priced. Around the same time, from 2001 to 2002, Ariel Sharon, the then Prime Minister of Israel, vetoed any purchase of Palestinian gas. In late 2004 and early 2005, Yasser Arafat, President of the Palestinian National Authority passed away. He was succeeded by Mahmoud Abbas. In 2006 Ariel Sharon was replaced by Ehud Olmert as the new Prime Minister of Israel. Both of these political shifts in leadership led to a more cooperative climate for negotiations. Negotiations between BG and Israel began again in 2007 and a contract was drafted, set to start in 2009. It stated the Israel would purchase .05 trillion cubic feet of natural gas from Palestine in exchange for 4 billion dollars annually. It was detailed that the money would go into an account not accessible directly by the Palestinian National Authority. This detail came as a result of the 2006 elections in the Palestinian territories, by which Hamas, a group recognized internationally as a terrorist group, gained control of the parliament. This change, paired with the outbreak and intensification of the second intifada which lasted from 2000 to 2005, effected Israeli's decision. As Hamas took control of the Gaza Strip in 2007 (the Palestinian Authority continued to have control over the West Bank) Israel expressed the senitment that any monetary profit from the gas deal would help to sponsor Hamas, whom Israel felt would use the profit to terrorize Israel. By the end of 2007, the dealing had stalled again. In 2012 more negotiations between the Palestinian Authority and Israel began. Hamas opposed the possibility of selling the natural gas from the Gaza Marine gas field. The negotiations once again came to a halt.

Power disputes
Israel and the Palestinian Territories are situated in close proximity to many other countries: Lebanon and Syria are to the north, while Cyprus, an island which rests nearby in the Mediterranean sea, is to the west just below Turkey. To the south is Egypt, a major supplier of energy to Israel. The water of the Mediterranean sea, which connects these countries, is not easy to divvy up equitably and often the gas fields that lie under it do not abide by given country borders. Concerns have been raised by both Lebanon and Egypt over Israel's claims to certain gas fields. And Israel has tightened ties with Cyprus over gas field negotiations. Regionally, the discovery of gas fields has led to increased tension between these closely placed countries.

The maritime laws and Israeli occupation in the Palestinian Territories have also complicated the clarity of who owns the Gaza Marine gas field. Although they are legally under the jurisdiction of the Palestinian Authority as a result of the Oslo Accords, by means of the Israeli occupation Israeli forces have prevented Palestinians physical access to the resources available offshore.

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