Saudi Arabia? Nope that has already been picked over. The “new” oil find is in Israel.
The old energy order in the Middle East is crumbling with Iran and Syria having left the Western fold and others, including Saudi Arabia, the largest of them all, in danger of doing so. Simultaneously, a new energy order is emerging to give the West some spine. In this new order, Israel is a major player.
The new energy order is founded on rock – the shale that traps vast stores of energy in deposits around the world. One of the largest deposits – 250 billion barrels of oil in Israel’s Shfela basin, comparable to Saudi Arabia’s entire reserves of 260 billion barrels of oil – has until now been unexploited, partly because the technology required has been expensive, mostly because the multinational oil companies that have the technology fear offending Muslims.
Of course you should read the whole thing for details but the essence is that if this oil can be exploited it will put a lid (depending on demand of course) on what can be charged for oil. In any case immediate fears of an oil shortage are put off a little longer. And if the Wave Engine works out it could extend that “little to fear” era by 50 or 100 years. Long enough to develop what ever comes next without requiring a crash program.
Speaking of offending Muslims. I wonder if they would be offended if the price of oil declines by half? It would be good to see that proposition tested in the real world.
Cross Posted at Power and Control
Comments
4 responses to “Huge Oil Discovery In The Middle East”
Then you have the oil shales of the North American west, the American and Canadian Rockies; once those get developed you’re going to see substantial changes in the politico-economic world.
Now, when Israel starts selling her oil to the world expect to see a lot of changes in people’s attitudes toward Israel in particular and Jews in general.
You seem to be suggesting that Israel would sell a commodity at half price. That’s a funny idea.
dr. kill,
You can ordinarily assume I’m moderately economically literate.
Increased supply + constant demand (alluded to in the text) = lower prices.
I see I’m going to have to post my bit on meaning.
Won’t her maniacal neighbors find Israel’s newfound oil to be still another highly potent reason to drive Israelis into the sea? Then they could move in and reap the profits of an oil economy for themselves. I think this discovery could put Israel’s security into even greater jeopardy.