Yogev Gerdos, Head of Budgets at the Finance Ministry, recently warned in a letter to Energy Ministry Director-General Yossi Dayan that “one of Israel’s most important and strategic natural resources is expected to run out — and we will all pay the price.” According to Ne4ws12, Gerdos cautioned that after a decade of prosperity in the gas sector, Israel is now facing serious challenges. For the first time since the discovery of major gas fields, he wrote, the country is projected to face a structural shortage of natural gas for domestic use within the next 25 years.
According to the Budget Division of the Finance Ministry, Israel must revise the amount of natural gas it reserves for domestic use. In a document attached to Yogev Gerdos’ letter, officials noted that “since the reserve obligation was last updated, the Israeli energy sector has made no progress in securing its needs through alternative sources to domestic gas.”
The document further warns that “among other things, the growth rate of renewable energy is still too slow to meet national targets, and infrastructure for storage and import of natural gas has yet to be established.” Combined with rising export levels, these shortfalls are accelerating the depletion of Israel’s gas reserves.
The document also emphasizes that natural gas is the main source of electricity production in Israel, currently accounting for 70% of total output. As a result, any shortage or price increase is expected to directly impact Israeli citizens through higher electricity rates.
Gerdos also raised concerns about the high level of concentration in Israel’s domestic gas market, pointing to the cross-ownership of reserves by the American energy giant Chevron, which acquired Noble Energy. “This concentration could lead in the near term to an increase in gas prices and, as a result, a rise in electricity prices,” he warned.
The issue has also drawn international attention. About a month and a half ago, it was revealed that the Trump administration had pressured Israel’s Treasury Ministry not to take any steps that would harm Chevron’s holdings, citing American strategic and economic interests.
