A green rush is surging in Israel’s gas market, and the results could reverberate for decades.
A new report by the gas giant Gazprom shows that Israeli and Palestinian production costs are converging at around $400 per gallon.
That’s a big jump from the $300 per gallon Gazprom was charging in 2016.
The company’s latest figures show that Israeli production has increased by over 300 percent over the past four years.
The Israeli market for gas rose by 30 percent last year, and that figure will reach 300 percent this year, Gazprom CEO Naftali Bennett said.
While gas prices in Israel are already very high, this trend could become even more so as more and more Palestinians demand the gas from Israel.
A study by Israel’s Institute for Energy Research (IERA) shows that in 2018, the Israeli economy will grow by 6.8 percent, and by 11.6 percent in 2019, when the economy is projected to grow by 13.5 percent.
That is a record-high growth rate for Israel.
This rapid growth in Israeli economic activity is happening despite a brutal occupation and a crippling blockade on the Palestinians.
The economic boom has been driven by a surge in oil and gas production in the occupied West Bank, which is expected to double to 1.6 million barrels per day by 2028.
The IERA study predicts that Palestinian oil production will increase by 300 percent by then.
The IERA also predicts that Israeli gas will overtake its American counterpart, Gazdev, as the country’s leading producer.
The two companies together produce more than 90 percent of the world’s gas, and their combined production could eclipse the United States in the coming decades.
For Gazprom, the prospect of having the Israeli market share over the US in a few years is enticing.
For Israel, it is not a good time to be growing faster than the US.
For the Israeli public, the economic impact of a US gas monopoly is already very real.
In January, the International Monetary Fund said that the Israeli gas monopoly would be “a source of long-term social and economic harm.”
The IMF also said that a new US-led trade war could lead to a “massive economic impact” and a loss of $6 trillion in annual revenues by 2025.
That is more than a billion dollars per day, and could become the main reason for the US to pull out of the Trans-Pacific Partnership, a trade deal the US and Israel signed in 2001.
Israel’s new monopoly could be the key to its long-range economic development.
The US and the European Union have been trying to block the deal, but the White House has said that if the deal is not approved, Israel will be left without a significant source of energy.
“We are not looking for an easy solution, but we are looking for a fair solution, and Israel’s continued control of the West Bank is a problem that has to be addressed,” Bennett told reporters in Tel Aviv on Monday.
Bennett added that if there is a US-Israeli trade war, “then we will be the only ones that will pay the price.
It’s not that we are not willing to pay the cost of the price, it’s that we will pay more than our share.”