Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )

We’re determined to get the gas out: Netanyahu

The Israeli Finance Ministry will adhere to demands from Noble Energy (ticker: NBL) and Delek to increase the price of gas from its offshore operations near the country.

The two large exploration and production companies have been at odds with the government regarding resource prices and the monopolization of certain projects.

The agreement from the Finance Ministry is an interesting twist after Noble and Delek refused to accept the lower domestic price limit, according to Haaretz, an Israeli newspaper. The Finance Minister essentially handed his authority to Prime Minister Benjamin Netanyahu, diminishing the power of the former in the contract talks.

By doing so, the government elects not to officially regulate prices and will instead allow them to be determined by independent electricity producers. The rule may change when the decision expires in six years.

Netanyahu received criticism from local media outlets for bowing to the gas producers, but the Prime Minister defended his decision in a recent cabinet meeting.

“We’re determined to get the gas out,” Netanyahu said.

“One of the things we need for the next decades is utilization of our gas resources. This is not solely for the purpose of supplying our current needs; it is also aimed at supplying our needs later.” Netanyahu added, “Eventually, we want to bring about the development of additional fields, and we know that Israel needs to be attractive, just like other countries have realized they need to be attractive both to supply the needs of the domestic economy and to be attractive to investors, because when you boil it down, the investors are the ones who develop the gas fields. That is what happened in the advanced countries that have gas, and there are a lot of them. It didn’t happen in other countries that decided to surrender to demagogic dictates. They went on arguing, and the gas stayed in the ground.”


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.