How Israel Got Its Energy Groove Back

Second chances, they say, are rare, especially in the Middle East. But when it comes to Israel’s vast off-shore gas reserves—some of the world’s most remarkable energy finds of the past half-century—it may be that the country’s politicians and citizens will get an opportunity that seemed all but lost a few short years ago. Israel can turn their natural-gas gift to its advantage in ways that will remake the Middle East.

I’ve been a keen advocate of Israel becoming energy independent since at least 2013. I’ve predicted in several op-eds and articles that exploitation of those reserves could transform the geopolitics of the region, and even Israel’s relations with Europe. This summer saw changes in regional geopolitics that have transformed Israel’s options for exploiting those reserves. What seemed a locked and buried treasure chest thanks both to the twists and turns of Israeli politics and to plunging energy prices worldwide now looks like a valuable regional bounty—one that makes Israel not only energy secure but also more secure in its relations with both its near and distant neighbors.

At the heart of the story is the demise of a 47-year-old Arab boycott that made doing business with Israel taboo for Western energy companies. As we’ll see, what brought the change was not so much a sudden warmth toward Israel; or even a need for its natural gas, but a growing fear of Iran—and with it the simultaneous discovery that partnering with Israel in the natural-gas market can strengthen and stabilize the entire region, to the benefit of both Israelis and Arabs.