Israel's Natural Gas Industry Offers Many Benefits

The Israeli Natural Gas Trade Association’s 2024 report was released this week by the economic consulting firm BDO. It shows, among other things, that the Jewish State is the largest energy supplier in the Eastern Mediterranean and leads OECD countries in the preservation of natural gas for future use. Furthermore, the level of natural gas production in Israel rose significantly over 2023 but so did the level of natural gas reserves estimated to still be available for exploitation.

Israel's domestic natural gas production has produced many benefits, including stable energy prices throughout the last year which has otherwise seen instability in many other areas. By contrast, energy prices have risen sharply in Europe over the past year as the supply of natural gas from traditional sources in Eastern Europe fluxuated due to the war between Russia and Ukraine. Israel has become an important supplier to the European market for this reason, further strengthening its economic and diplomatic ties with several countries.

The report also listed some of the benefits to Israeli households, including an average monthly saving of NIS 1,000 due to reduced electricity prices, adding up to national savings of nearly NIS 425 billion. To this can be added the creation of a substantial number of jobs in the Israeli economy, as well as investment opportunities.

The report also listed an improvement in air quality in Israel, as burning natural gas to produce electricity results in far less air pollution than other methods. This leads to improved quality of life as well as reduced health care costs.