Israel and dependable energy supplies
Israel, known as the State of Israel, is a highly developed nation in the Middle East, but it faces significant challenges regarding energy supplies due to a scarcity of natural resources. The country relies heavily on fossil fuels, particularly coal and crude oil, while its regional neighbors possess abundant energy resources. This reliance on external energy imports, particularly from countries like Russia, Azerbaijan, and Egypt, exposes Israel to vulnerabilities tied to the political climate and shifting alliances. Despite efforts to diversify its energy sources and increase domestic production, the majority of Israel's electricity still comes from imported coal, and only a small percentage is derived from renewable sources.
The discovery of offshore natural gas in the early 2000s has provided some hope for addressing these energy challenges, leading to partnerships with Egypt to secure natural gas supplies. Additionally, Israel is actively exploring alternative energy options, including solar energy, leveraging its geographic advantages. However, geopolitical tensions and recent conflicts have hindered progress in transitioning to sustainable energy solutions. As of 2022, Israel had made limited strides in renewable energy, with only 9.9 percent of its electricity generated from such sources. The ongoing conflict and socio-political dynamics continue to complicate Israel's energy landscape, impacting its quest for a stable and affordable energy supply.
On this Page
Subject Terms
Israel and dependable energy supplies
Official Name: State of Israel.
Summary: Israel has almost no natural energy resources. Despite this, it is one of the most highly developed nations in the Middle East, and its persistent need for more affordable and dependable energy supplies creates an ongoing energy crisis. Fossil fuels, particularly coal and crude oil, continue to dominate the energy sector.
Located in the Middle East and situated along the Mediterranean Sea, Israel has limited access to affordable energy resources. By contrast, Israel’s neighbors lay claim to a wealth of natural resources, containing roughly 61 percent of the world’s proven oil resources and roughly 40 percent of the world’s proven gas resources. Hostilities with other Arab nations are ubiquitous as a result of Israel’s strong ties with the West and the ongoing controversy over hotly contested lands. Because more than three-fourths of Israel’s population is Jewish, religious differences affect every aspect of its dealings with its Arab neighbors. Because of its unique position in the Middle East, Israel has a long history of secrecy surrounding its energy-seeking activities.
Energy Vulnerability
By the early twenty-first century, the lack of support from other Arab nations forced Israel to import oil from Russia, Azerbaijan, the North Sea, West Africa, and Mexico. Currently, agreements with Egypt have provided Israel with a ready supply of imported natural gas. However, Israel’s energy supplies are always vulnerable to the political climate, and imports from Egypt are subject to overpricing and sudden stoppages.
Since 1990, power consumption in Israel has increased at a rate of 7.5 percent per year. That increase is greater than that of any other industrialized country. According to 2022 estimates, Israel's per capita electricity consumption was 6.87 megawatt-hours (MWh), a nine percent increase from 2000. Israel is able to meet that requirement and even exported more than nine percent of its electricity in 2022. However, much of that power is generated by coal that has been imported from foreign countries, including South Africa, Colombia, Australia, Indonesia, Poland, and China.
Although the Israeli government continues to control the operation and regulation of the energy sector, officials actively encourage foreign exploration and development of Israeli energy sources. The country’s two major refineries, at Haifa and Ashdod, were privatized in the early twenty-first century. In response to the discovery of offshore natural gas resources in the early 2000s, Israel policymakers generally consider natural gas to be the most feasible means of dealing with Israel’s energy problems, and the Ministry of National Infrastructure has headed an effort to establish a national gas distribution system. In addition to its own reserves, Israel has signed an export agreement with Egypt, which has the third-largest natural gas reserves in Africa.
Other strategies for dealing with energy vulnerability include the promotion of domestic production, exploring sources of alternative energy, and building up petroleum reserves. Efforts to build up reserves have been a priority since the 1940s when explorations began in the Heletz area and expanded to include the areas of Kokhav, Brur, Ashdod, and Zuk Tamrur. After wresting control of the Sinai Peninsula from Egypt as a result of the 1967 war, Israel solved its petroleum shortages by taking control of the oil fields in the newly acquired territory. In the short term, supply met demand as production rose to 43.2 billion barrels per day. In the aftermath of the 1973 war with Egypt, however, Israel withdrew from the Sinai and was forced to turn to Iran to meet its petroleum needs. That partnership ended abruptly in 1979, when the shah of Iran was deposed, motivating Israel to launch new explorations. By the 1990s, several minor discoveries in the areas of the Mediterranean and Dead Seas had only slightly reduced Israel’s dependence on petroleum exports.
The prospect of using shale deposits to meet some of Israel’s energy needs has received considerable attention. According to the World Energy Council, shale deposits located near Jerusalem could eventually yield as much as 250 billion barrels of oil. Because of the ready availability of these large deposits of oil shale, efforts have been made to develop an affordable means of extracting the fuel from the rock. However, Israel suffers from chronic water shortages, and progress has been slow because of the need to use large amounts of water in this process.
In the 1940s, Israel formed a partnership with France to explore the possibility of developing nuclear capability. The motivating force was David Ben-Gurion, who served as both prime minister and defense minister. At that time, France had not even developed its own nuclear capability, but the French government wanted to recognize Israel’s contributions to the Suez War. Israel believed developing nuclear capability was essential to its security, because it was surrounded by hostility. It was decades before Israel began seriously considering the advantage of using its nuclear capability to explore new methods of meeting its energy needs.
Israeli officials have repeatedly sought to bypass restrictions enforced by the Nuclear Suppliers Group, which would permit them to import nuclear technology without being bound by full-scope safeguards that are normally required; officials claim that those safeguards are not feasible for Israel because of its position in the Arab world. Despite the failure to secure that exception, the Israel Electric Corporation and the Israel Atomic Energy Commission have proceeded with plans to create necessary engineering and technical infrastructures.
It may well be that the solution to Israel’s energy crisis lies in further development of solar energy, a field in which Israel has long been recognized as a pioneer. Because 60 percent of Israeli land is desert, there are ample avenues for developing this capacity. Solar hot water heaters were introduced in Israel in the 1950s, and today solar water heaters are seen atop roofs throughout the country. The first passive solar house was built from sun-dried adobe bricks in the late 1970s, and that principle has become a common element of Israeli architecture. In 1985, the Israeli government established the Ben-Gurion National Solar Energy Center in the Negev Desert. There have been various experiments involving the generation of electricity from saline solar ponds and parabolic-trough reflectors, and a number of academicians are engaged in solar energy development.
Prior to its 2023 war with Hamas, Israeli researchers were exploring possibilities involving the use of discarded seed crops in developing biofuels that would help to mitigate Israel’s energy deficiencies and promote sustainable development. Students at Ben-Gurion University were using discarded seed crops, such as jatropha and castor, for this purpose. In the absence of adequate water supplies, Israeli farmers became innovative, using wastewater to irrigate crops and raise fish. Israel also looked to foreign allies for help in solving its energy dilemma. Both Israel and the United States shared a strong desire to reduce the need to rely on foreign entities to supply energy. As a result, in 1996 the two countries formed an alliance to explore mutually beneficial energy research and development activities. However, as of 2022, only 9.9 percent of the country's electricity came from renewables, with the rest coming from fossil fuels. The country's war with Hamas stalled any efforts to transition to sustainable energy. On October 7, 2023, Hamas-led Palestinian militant groups attacked Israel, killing more than 1,000 people, mainly civilians. Additionally, 251 Israelis and foreigners were taken hostage. After this, Israel launched an extremely destructive bombing campaign and invaded Gaza, intent on destroying Hamas and freeing hostages. By 2024, more than 39,000 Palestinians in Gaza had been killed. More than half of the homes in Gaza had been destroyed. World leaders continued to push for a cease-fire in Gaza. Israel agreed to continue discussions.
Bibliography
Bahgat, Gawdat. “Energy and the Arab-Israel Conflict.” Middle Eastern Studies 44, no. 6 (November 2008).
Bialer, Uri. “Fuel Bridge Across the Middle East—Israel, Iran, and the Eilat-Ashkelon Oil Pipeline.” Israel Studies 12, no. 3 (Fall 2007).
Colleran, Brian E. “Israel’s Big Green Future.” The Environmental Magazine 19, no. 3 (May/June 2008).
Hillstrom, Kevin, and L. C. Hillstrom. Africa and the Middle East: A Continental Overview of Environmental Issues. Santa Barbara, CA: ABC-CLIO, 2003.
"Share of Renewables in Energy Consumption." IEA 50, www.iea.org/countries/israel/renewables. Accessed 2 Aug. 2024.
"Sources of Electricity Generation." IEA 50, www.iea.org/countries/israel/electricity. Accessed 2 Aug. 2024.
Stephens, B. “Could Israel Become an Energy Giant?” Wall Street Journal, April 5, 2011. online.wsj.com/article/SB10001424052748703806304576242420737584278.html. Accessed 2 Aug. 2024.
US Congress. “United States-Israel Energy Cooperation Act: Report to Accompany HR-2730, 2007.” www.gpo.gov/fdsys/pkg/CRPT-109hrpt543/pdf/CRPT-109hrpt543.pdf. Accessed 2 Aug. 2024.