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February 13, 2016 / 4 Adar I, 5776

Posts Tagged ‘oil’

Losing in Arbitration, Egypt Must Pay Israel $1.76 Billion for Gas Stoppage

Sunday, December 6th, 2015

(JNi.media) The Israel Electric Corp on Sunday announced that Egyptian natural gas companies will pay compensation of $1.76 billion for stopping gas supplies in 2012, after Mohammed Morsi had been elected president. The termination, which followed months of terrorist attacks on the pipeline in the Sinai, reneged on a 20-year deal between Egypt and Israel. The state-owned IEC initially sued Egypt Mediterranean Gas for $4 billion in damages, but an international arbitrator awarded it only $1.76 billion plus interest and legal expenses.

IEC said it had sustained heavy damages as a result of Egypt’s blocking of gas supplies, forcing it to purchase more expensive fuel to generate electricity.

The Middle east Monitor noted that Egypt’s natural gas reserves had been depleted over the first decade of the 21st century, so that by 2008 “Egypt became a pure importer of energy.” In fact, after Egypt had exported natural gas to Israel since the mid-1990s, it will start importing Israeli gas in 2019 and 2020, for a period of 10 to 15 years. Apparently, well before the “Arab Spring,” still under the Hosni Mubarak regime, “Egyptian energy experts had warned their government of the consequences of continuing the strategy of exporting oil and natural gas for reasons associated with the imminent depletion of Egypt’s fuel resources.”

Sufganiot Galore

Thursday, December 3rd, 2015

Sufganiot (doughnuts) for sale at the Marzipan bakery in the Machane Yehuda shuk in Jerusalem, before the holiday of Chanukah.

Sufganiot

Sufganiot

Sufganiot

Sufganiot

US Contends: ISIS Oil Industry in Syria Crippled by Coalition Air Campaign

Wednesday, December 2nd, 2015

US military leaders say Syrian oil revenues to ISIS have been drastically cut by US-led coalition air strikes.

The Da’esh (ISIS) oil infrastructure in Syria has been crippled as a result of the attacks, according to a briefing by U.S. military spokesperson Col. Steve Warren Tuesday in Baghdad.

And yet, those oil facilities are only crippled — they’re still not out for the count, Warren acknowledged. “It’s not a knockout,” he said. “It’s a body blow.”

A month of air strikes has largely shut down the oil facilities at Deir ez-Zor, which provides about two-thirds of the oil revenue for Da’esh, Warren said.

But the goal is not really to destroy the structures anyway.

According to Marine Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff, the aim is to prevent Da’esh from producing and shipping oil while keeping the infrastructure relatively intact so it can be restored once the war in Syria is over, USA Today reported.

The black gold once provided billions of dollars to the Syrian government, which charged fees to companies from Russia, Britain, China, and the Netherlands. Syria also owned and operated its own oil wells as well, most of which were located in Deir ez-Zor, in the eastern part of the country.

That region is now controlled by Da’esh, which the Treasury estimated sells discounted oil on the black market for half a billion dollars a year. At least half of the terror group’s revenue is raised from the sale of oil, according to the Pentagon. Da’esh also controls oil-producing regions in Iraq.

On Wednesday, the Russian Defense Ministry held a briefing in Moscow to present maps, photographs and other materials as evidence to support accusations by President Vladimir Putin that Turkey’s President Recep Tayyip Erdogan and his family are importing black market oil from ISIS-controlled territories in Syria and Iraq.

Erdogan denied the allegations, aimed at him during a conversation with reporters on the sidelines of the COP-21 climate change conference in Paris. The Turkish president vowed to resign if Putin could prove his claims were true.

Russia Presents ‘Evidence’ of Alleged ISIS Oil Imports to Turkey

Wednesday, December 2nd, 2015

Russian officials presented materials on Wednesday that they said proved Turkey’s leadership is “involved in illegal oil trade with ISIS.”

The Russian Defense Ministry presented materials in a Moscow briefing on Wednesday that officials said proved Turkey has been importing oil from the Da’esh (ISIS) terrorist organization.

On Monday, Russian President Vladimir Putin accused Turkey of shooting down one of Russia’s warplanes to protect the transfer of black market Syrian oil from ISIS through Turkey.

Turkish President Recep Tayyip Erdogan said he would resign if Putin could prove the allegation.

At the briefing in Moscow, Russian Defense Ministry officials charged Turkey’s leadership, including Erdogan and his family, with being “involved in illegal oil trade with [ISIS]… Turkey is the final destination for oil smuggled from Syria and Iraq,” said Deputy Defense Ministery Anatoly Antonov.

Russian Defense Ministry map showing alleged oil truck routes to Turkey from ISIS oil wells in Syria.

Russian Defense Ministry map showing alleged oil truck routes to Turkey from ISIS oil wells in Syria.

“Today, we are presenting only some of the facts that confirm that a whole team of bandits and Turkish elites stealing oil from their neighbors is operating in the region,” Antonov said. He added that the oil “in large quantities” enters Turkish territory in “live oil pipelines” via thousands of oil trucks.

“According to our data, the top political leadership of the country – President Erdogan and his family – is involved in this criminal business,” he added.

Lt.-Gen. Sergey Rudskoy, also at the briefing, said that Russian air strikes that began on September 30 had significantly reduced the oil income of the terror organization.

“The income [of Da’esh] was about $3 million per day,” he said. “After two months of Russian air strikes their income was about $1.5 million a day.”

The officials presented photos of oil trucks, videos of air strikes on ISIS oil storage facilities and maps showing the routes of oil deliveries and promised more evidence to be posted on the ministry’s website in the coming days.

Erdogan to Quit If Putin Proves Claim Turkey Imports Oil From ISIS

Tuesday, December 1st, 2015

Turkish President Recep Tayyip Erdogan has lashed back at claims by Russian President Vladimir Putin that Ankara buys its oil from Da’esh (ISIS).

The exchange took place on the sidelines of the COP 21 global conference on climate change taking place in Paris.

“We have received additional data which unfortunately confirm that this oil, produced in areas controlled by the Islamic State (ISIS) and other terrorist organizations, is transported on an industrial scale to Turkey,” Putin said, according to the Hurriyet Daily News, a Turkey-based newspaper.

“We have all grounds to suspect that the decision to down our plane was motivated by the intention to secure these routes of delivering oil to ports where it is loaded on tankers,” Russia’s TASS news agency also quoted Putin as saying during a news conference on the sidelines of the climate talks.

Speaking to reporters in Paris, Erdogan denied the claims, saying Turkey obtained all its oil and gas imports “through the legal path… We are not dishonest so as to do this kind of exchange with terrorist groups. Everyone needs to know this,” he said. “If evidence of this kind is found, let those who find it present it,” he added, according to TASS.

Erdogan labeled the accusations “slander” and vowed to resign if the claims were in fact proved.

“I will say something very strong here. If such a thing is proved, the nobility of our nation would require that I would not stay in office,” he was quoted by the state-run Andolu news agency as saying. “I am asking Mr. Putin, would you stay in that office? I say this clearly.”

Nevertheless, Erdogan clearly was also mindful that his nation cannot afford to alienate mighty Russia, and appeared to be working hard to avoid it. In his remarks he described Moscow as a “strategic partner,” adding, “Even if it is just a piece of string remaining … we don’t want ties to be cut. How Russia will proceed, I cannot know.”

Ultimately, however, Erdogan said that continued Russian sanctions against his country would be met with those of Turkey – but not yet.

“Let’s act patiently and not emotionally,” he told reporters. “Let’s let their chips fall as they may, then if we have our own chips, we’ll let those fall.”

Huge Oil Discovery in Golan Heights Can Make Israel Energy Self-Sufficient

Wednesday, October 7th, 2015

There’s oil in them northern Golan Heights … A LOT of oil, according to experts involved in drilling for the black gold over the past year.

Enough, in fact, to potentially make Israel self-sufficient for many years to come, according to Afek Oil and Gas chief geologist Dr. Yuval Bartov, who spoke on Wednesday with Israel’s Channel 2 TV news. Afek is a subsidiary of Genie Energy, a U.S. firm.

“We are talking about a strata which is 350 meters thick and what is important is the thickness and the porosity,” Bartov said.

“On average in the world strata are 20-30 meters thick, so this is ten times as large as that, so we are talking about significant quantities. The important thing is to know the oil is in the rock and that’s what we now know.”

The potential for production is huge: barrels in the billions, certainly enough to provide for decades of local consumption in a country which uses 270,000 barrels per day.

But now the question comes down to production costs – and the cost to the environment.

How easily can the oil be extracted from the ground, and what will such a process do to the flora and fauna in the area around the production site, if anything?

The debate over the latter issue might cost the state millions in political wrangling alone, not including the very real issue of how the environment will need to be protected. The complexities involved in extracting the oil may also end up being a more costly or lengthy process, depending on how far down the black gold runs and how difficult it is to bring up.

All of that assumes, of course, that the geopolitical debates over the Golan Heights will have been put to rest by the time the region’s oil production is ready to flow.

Exploratory drilling which began in December 2014 ended with three sites being tapped. Afek recently submitted a request to the government for authorization to drill an additional 10 wells.

Huge Oil Discovery on the Golan Heights

Wednesday, October 7th, 2015

Syrian rebels, the Islamic State (ISIS) and the Assad regime, and today that means Russia, now have another reason to capture the Golan Heights – oil.

Drilling that began more than a year ago has exposed a huge find of billions of barrels of oil, but it is too early to know if the black gold can be extracted at a price that would make the oil commercially viable.

Afek Oil and Gas chief geologist Dr. Yuval Bartov was quoted by Globes as saying:

We are talking about a strata which is 350 meters thick, and what is important is the thickness and the porosity. On average in the world strata are 20-30 meters thick, so this is ten times as large as that, so we are talking about significant quantities. The important thing is to know the oil is in the rock and that’s what we now know.

The drilling is in the southern Golan Heights, far away from the northern border but several miles from the eastern border. Syria has claimed the entire Golan since it lost the strategic and water-rich area in the Six-Day War in 1967.

If oil can be extracted, it will be a huge bonanza for Israel and an enormous reason for whoever rules in Syria, or for Hezbollah that is fighting with Assad’s forces and is based in Lebanon, to launch a war on Israel. Israel uses approximately 270,000 barrels a day. Billions of barrels of oil would satisfy the country’s need for a long time.

If the oil can be produced at today’s prices, which are the lowest in years, it would generate a huge employment boom. It also would infuriate environmentalists, who have fought oil drilling the Golan Heights and virtually anywhere else in Israel because of damage to the pristine landscape.

Drilling in the Golan Heights was delayed by environmentalists and was resumed last February when the court dismissed their appeal to stop the work.

The read area marks the eastern border with Syria, The black area is the approximate location of the oil drills.

The read area marks the eastern border with Syria, The black area is the approximate location of the oil drills.

Printed from: http://www.jewishpress.com/news/breaking-news/huge-oil-discovery-on-the-golan-heights/2015/10/07/

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