The Dilemma Plaguing Israel’s Gas Bonanza
5:35 PM, Jun 7, 2013 • By DANIEL DORON
Export advocates use the U.S. example to support their case. But there is no doubt the U.S. possesses indeed huge reserves that assure it energy independence even if it exports a great share of them. The U.S. also enjoys competitive energy markets that can be relied on to price and allocate resources efficiently. In Israel prices are "negotiated" by the semi-monopolistic gas producers with mostly large monopolistic users, like Israel's Electric Corp.
Long-term strategic and economic consideration must therefore curb N&D’s rush to benefit from speculative, monopolistic profits. The decision as to whether to export, when and how much must be carefully assessed, for otherwise not only Israel, but the world’s security and economy, could wind up paying a dear price.
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