Energy Policy Formulation in Israel Following its Recent Gas Discoveries
The development of gas in the Tamar and Leviathan fields is a turning point for Israeli energy policy, as its government decided not only to enhance its energy security but also to become an energy exporter. This paper examines the factors that affect the formulation of energy policy in Israel. Initially, it examines the internal and external environment of Israel, assessing the evolution of policy, regulatory and competition issues related to the recent discoveries in its territory. Then it presents a qualitative research, undertaken in 2015, based on the responses of regional energy experts. The discoveries are not considered “a black swan” that change regional energy markets, but they are likely to be affect local energy systems. The paper demonstrates that Israel's energy policy will be evaluated mainly based on its techno-economic feasibility, considering that its energy policy does not strengthen political tensions while any progress in resolving the region's political disputes should be viewed as an unexpected gain.
Keywords: Israel, Energy Policy, Energy Resources.
JEL Classifications: Q40, Q48, N55