Dreamed dream: How do we miss out on profits of hundreds of billions?

NIS 116 billion is the savings for the economy following the use of natural gas in 2014-2021, a small amount of money compared to what will be saved in 2022, when world energy prices soared.

Especially now it is hard not to be angry about the fact that those who determined that it would be better for the gas to "stay in the ground" prevented Israel from becoming Europe's important gas supplier

Nir Kipnis

04/05/2022

Wednesday, 04 May 2022, 10:48 Updated: Friday, 06 May 2022, 08:31

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The cost of living is a global problem that is also faced in countries where milkshakes in the supermarket are cheaper than in Israel.

Inflation has lifted its head in markets that have not yet fully recovered from the corona and these have also been joined by the Russian invasion of Ukraine that has caused certain commodity prices to skyrocket, so Shay will watch the news in many countries around the world.

This is mainly due to energy prices - oil and natural gas, in light of which European residents have warmed up.

Russia is responsible for close to a third of Europe's gas consumption, while the most important in the continent (economically and politically), Germany - is the most dependent on it.

Let's put it simply: without Russian gas, German residents would have frozen to death in the harsh European winter.

Direction countries and Italy, for example, also have high dependence on Russian gas.

Since the sanctions imposed on Russia over the invasion of Ukraine, Europe has been trying to reduce its dependence on Russian gas, as as long as it flows in the pipeline, it seems its owners can bear the other economic restrictions imposed on them.

Meanwhile, as part of the balance of terror between the parties, Putin announced last week that Russia intends to immediately stop the flow of gas to Poland and Bulgaria.

As part of the withdrawal from Russian gas, Britain announced that it is tightening the boycott of Russia and extending it to the gas sector as well.

Britain will get along with natural gas from other sources.

In the rest of Europe, more measured measures are being tried, such as increasing the productivity of the Scandinavian countries (Norway in particular), so that they will supply more gas, especially for the coming winter.

Everyone knows that it is relatively easy to boycott the Russians in the spring, but if the attack continues - and by all indications Putin has no intention of retreating soon, the European withdrawal of Russian products will be put to the test in September, when the weather begins to cool.

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Drilling rig off the coast of Israel.

The problem with the purists who cried out that it is better for the gas to remain in the ground is that they never take responsibility for their actions (Photo: Official Website, Albatross)

What will be the savings in 2022, one can only guess

In a sharp transition to a warmer place, even if not without its own problems.

About two weeks ago, the Gas Authority published data on the huge savings enjoyed by the Israeli economy due to its ability to maintain relatively low energy prices, thanks to the discovery of natural gas off the coast of Israel.

About NIS 116 billion, insane amount, was saved for the Israeli economy as a result of the use of natural gas.

The report, which deals with economic savings over the seven years, between 2014-2021, further shows that most of the savings were in the electricity sector, about NIS 81 billion and the rest in the industrial sector.

More than half of the amount, about NIS 65 billion, is attributed to 2021. How?

This year, the year of the global recovery from the corona, there have been steep rises in global energy prices, mainly oil and gas.

In all countries of the world, electricity prices have risen sharply.

In Israel, which enjoys the supply of natural gas at a fixed and known price in advance, thanks to the gas layout, a pair of words that fascinated the Israeli media.

We'll be back to that soon.

But first it may be worth noting that the data were collected and calculated before the Russian invasion, meaning - the savings for the Israeli economy in 2022, will probably be much more dramatic.

Although electricity prices have risen in Israel as well, mainly due to the fact that part - to our delight - part of Israel's energy production is still based on coal, compared to the global average price increase, the 5% added to our electricity bill now looks like small money compared to what you pay. , The Europeans.

The gas authority's economic model takes into account the alternatives that would have been required to supply energy to the Israeli economy had it not been for gas, including the establishment of an alternative production infrastructure, but what it does not take into account are opportunities that could arise as a result of Israel becoming a gas exporting country 2022

Demonstrations against the gas layout.

How ridiculous they look in retrospect (Photo: Roni Kanfo)

It's better to stay in the ground ...

The report of the Natural Gas Authority could have been proof of the victory of common sense over populism.

Remember all those demonstrations, including newspaper headlines about the "gas robbery"?

How was the gas outline that was so well-received, in retrospect, with the citizens of Israel as "capital, government, the underworld" presented to the public?

How did all the purists determine that in such conditions it would have been better for the gas to remain in the ground?

The problem with such purifiers is that they do not have to take responsibility for anything.

Yesterday they chatted against the gas, tomorrow they will find another purpose for the agenda whose whole purpose of existence can be summed up in childish law: a demonstration, no matter what.

As long as it is clear that this is merely a screaming cult, as for example in the case of vaccine opponents (who claim we were all supposed to die already as a result of their side effects), fine.

The right to an independent opinion in a democratic space is almost unlimited.

You can shrug your shoulders and move on.

The problem that the protests against the gas outline at the time, were also supported by some of the mainstream media and some populist politicians who suited them to support the conspiracy theory that oppresses the public.

"This gas belongs to all of us" they explained to us - when the bottom line was always "it would have been better for it to stay in the ground".

It will be said immediately: in any transaction, even in a transaction between a state and private entities, it is always possible to obtain better terms.

The gas layout was amended, renovated and it was possible that here and there it could have yielded even more to Israel and its citizens.

The "wealth fund", which was intended to distribute some of the profits for projects that will benefit the lives of all of us, has also been filled and is being filled with laziness.

And yet it is a victory, a success story, the discovery and training of an energy source that has saved, saves and will save us all hundreds of billions!

Protests against wind turbines in the Golan Heights.

No solution is probably "green" enough for everyone (Photo: Eli Ashkenazi)

Natural and available, so why chase after the wind?

Seemingly the clear and unambiguous figures were supposed to constitute the victory of common sense over populism.

Victory for those who do over those who only know how to shout.

An Israeli victory that not only affected the public coffers, but also made Israel a partner in forums it did not know before, as an important and influential energy producer in the region.

And yet this achievement is also accompanied by a sour feeling.

Because the excellent reports reflect the fronts on which the failure of socialism-in-penny that greenish populism failed, not the ones on which he won.

what does it mean?

That in recent years the discovery and development operations of new gas reservoirs have been halted.

The Minister of Energy, feeling committed to an agenda full of wind and sun, has announced a freeze on efforts in the field.

This is while Israel is sitting on a gold mine, true - not completely green, but - and this is a very big but - less polluting than any other means we knew until a few years ago.

The green vision, which in part is good and true, even vital, takes us to a world that is full of solar and wind energies, but, mind you - not only are they capable of providing a significant percentage of the energy consumption of an evolving world, but they are not without their own problems.

You have already seen how much wind has been blown around the construction of wind turbines in the Golan Heights (hitting the landscape, hitting birds - we have already said: purists will always find a subject to protest).

And what about solar energy?

Wait for the moment when it turns out that obsolete panels are not recyclable and need to be buried in the ground.

Do not have to be cynical: a growing combination of "green" energy sources with or without quotes, should be the constitutional bread of everyone involved in the field, but it is not "or or", and right now natural gas is not only the most affordable alternative to coal, but also The greenest.

Vladimir Putin.

When Europe is blackmailed by him, Israel could reach out (Photo: AP)

Remember how we would shut down the vehicle one day a week?

Just yesterday we celebrated our blessed independence, including an energetic independence we could once only dream of: people aged 50 and over can recreate our childhood memory, which included a sticker on the family vehicle that determined which day of the week it should be disabled.

I will personally tell you that my father, who needed his van for work, was forced to disable it on Saturday, which prevented us from traveling to the sea or for trips on the weekends.

If the last paragraph does not ring a familiar bell, a sign that you are young.

Here we have a dream in blue-white-green: Israel could now become a dominant player in the supply of natural gas to Europe, if the State of Israel had not advanced one step at a time and two steps back - coveting gas and its profits, but too attentive to purifiers, although proven time and time again Whose arguments do not stand the test of reality.

True, no one knows what lies in the belly of the earth and it is doubtful whether Israel was or will be a major player in the global energy market, but hey - who believed until a few years ago, that this would be the case in the regional energy economy?

Just imagine Israel replacing Russia as the one responsible for a massive supply of gas to Germany. Political influence.

And maybe it's not too late.

Politicians do not like to admit mistakes, but only to let field policies dissolve them.

Therefore, one can hope that all the wonders of natural gas are not over yet.

True, we have already missed the opportunity to balance the state budget deficit as a result of the war between Russia and Ukraine, but the energy market knows ups and downs over the years - and with a little thought, Israel could benefit significantly more next time energy demand rises and prices rise.

For that to happen, action must be taken now, as the gas does not come out of the ground voluntarily.

Even after it is discovered, more years are needed for development.

It's not too late to get on the energy train.

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