These facilities have tight security measures, although Tamar, one of the production platforms operated by Chevron is located just 15 miles from Ashkelon, a city in southern Israel, and could potentially be vulnerable to attacks from Gaza. .<\/p>\n\n\n\n
During the fighting in 2021, the Israeli government ordered Chevron to temporarily shut down Tamar. <\/p>\n\n\n\n
In a statement, Chevron emphasized that “the company is focused on the safe and reliable supply of natural gas for the benefit of the Israeli domestic market and our regional customers.” The company referred questions about the continued operation of the facilities to the Israeli government. It is highlighted that the energy giant is working on plans to expand production at these units, called Leviathan and Tamar, and to add pipelines to help increase natural gas flows from Israel to Egypt. It is also studying a floating facility to process liquefied natural gas in Israeli waters, a project that would cost several billion dollars. Along with Israel, Chevron is also active in Egypt, a major producer and consumer of natural gas, as well as in Cyprus.<\/p>\n\n\n\n
The heavy fighting that began on Saturday could potentially slow the pace of investment in natural gas fields in the region. It could also hinder Israel’s efforts to attract more international energy companies to drill for natural gas.<\/p>\n\n\n\n
The Greek Energean<\/strong><\/p>\n\n\n\n Offshore natural gas fields in Israel are Tamar, Leviathan, Karis and Tanin. The last two have been operated by Energean since 2017 when it proceeded with respective acquisitions.<\/p>\n\n\n <\/p>\n\n\n\n The battles being fought are not close to the FPSO, (floating production storage and offloading unit) but also to its operations.<\/p>\n\n\n\n It is noted that the FPSO, which is currently producing natural gas from the Karis field, is located 90 km from the coast of Israel and is closer to the EEZ of Cyprus. Neither the Energean administrative services in Tel Aviv nor the FPSO’s technical base in Haifa face any problems. <\/p>\n\n\n\n It is worth noting that the quantities of gas from Karis to the Israeli market amount to 6 billion. cubic meters per year. And they cover half of the needs of households and businesses.<\/p>\n\n\n\n Energean is listed on the Tel Aviv and London Stock Exchanges and is currently in the process of preparing the development plan for the Katlan field with reserves of 70 billion. cubic meters of natural gas, while before the end of the year the gas field in Northern Karis will also be put into production.<\/p>\n\n\n\n Oil and the threat of Hormuz<\/strong><\/p>\n\n\n\n Both Israel and Palestine are not major oil players, but the conflict lies in a wider key oil-producing region.<\/p>\n\n\n\n Israel has two oil refineries with a combined capacity of nearly 300,000 barrels per day. According to the US Energy Information Administration (EIA), the country has “virtually no crude oil production”. The Palestinian territories do not produce oil, according to EIA data.<\/p>\n\n\n\n A possible retaliatory strike against the Islamic Republic raises concerns about the Strait of Hormuz, the vital shipping artery that Tehran has previously threatened to close.<\/p>\n\n\n\n There is also the prospect of the US reimposing restrictions on Iranian oil exports.<\/p>\n\n\n\n The risk, however, is escalating as global crude inventories deplete due to sharp production cuts by Saudi Arabia and Russia, which momentarily sent Brent prices within a breath of $100 a barrel.<\/p>\n\n\n\n Days of 1973<\/strong><\/p>\n\n\n\n The attack comes nearly 50 years after the Arab oil embargo, when Saudi Arabia and other OPEC producers turned off the taps to the west in the wake of the 1973 Yom Kippur War.<\/p>\n\n\n\n No one expects Riyadh \u2013 which has been negotiating with Washington to normalize relations with Israel \u2013 to now turn off the taps in solidarity with the Palestinians. At worst, the conflict could derail normalization talks and prevent any additional oil flows from Saudi Arabia.<\/p>\n\n\n\n However, the oil market has none of the characteristics it had before October 1973. Back then, oil demand was booming and the world had used up all its spare production capacity. Today, consumption growth has been contained and is likely to slow further as electric vehicles become a reality. In addition, Saudi Arabia and the United Arab Emirates have significant excess capacity, which they use to contain prices if they choose.<\/p>\n\n\n\n For its part, Iran, also a member of OPEC, has expressed its support for the Palestinian attack. Iranian oil has become increasingly important to the market as the country’s exports have rebounded to a five-year high.<\/p>\n","protected":false},"excerpt":{"rendered":" Fighting between Israel and Hamas militants could derail Israel’s and the wider eastern Mediterranean’s ambitions to become a hub for natural gas exports to…<\/p>\n","protected":false},"author":1,"featured_media":15670,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[620,2955],"tags":[2391,153,1040,1180,1668],"class_list":["post-15728","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-energy","tag-energy","tag-israel","tag-middle-east","tag-oil","tag-palestine"],"_links":{"self":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/15728","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15728"}],"version-history":[{"count":1,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/15728\/revisions"}],"predecessor-version":[{"id":15730,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/15728\/revisions\/15730"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/media\/15670"}],"wp:attachment":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2023\/10\/image-90-1024x895.png\")