Israel Is Wooing Houston Energy Companies

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Exploration and production (E&P) companies and those that provide infrastructure services in the U.S. are seeing a lot of demand from Israel to tap the opportunity present in its natural gas reserves. The most promising discovery is that of Leviathan natural gas reserves off the coast of Israel that holds a lot of promise and opportunity. Israel is going all out to bring in E&P companies and medium-sized companies like Noble Energy. Read this article to learn more about this new development.

Israel Wooing U.S. Energy Companies To Tap Gas Reserves

Lacking the expertise needed to manage oil and gas production in its offshore oilfields, Israel is welcoming Houston-based energy companies to invest in its offshore energy production. They are looking at both E&P companies as well as those that provide support services for the smooth functioning of the oil and gas industry in Israel.

Terry Wade and Kristen Hays said in a recent article:

“Israel is working to persuade more U.S. energy companies to invest in its growing offshore fields, saying a fractious delay to Houston-based Noble Energy Inc’s (NBL.N) massive Leviathan natural gas project will soon end if a new regulatory regime takes effect.”

Infrastructural Services In Demand For Gas Industry In Israel

Israel lacks the infrastructural services that are needed to manage oil and gas production activities. So much so that if there is a broken part in a rig, it has to be shipped back to Texas for repairs, leading to additional expenses for energy companies.

According to another news article:

“Firms that offer gas rig support services are critically scarce in Israel today, potentially leading to situations where a broken part must be shipped back to Texas for repair due to the lack of suitable rehabilitative machinery here, Freeman explained.”

Oil and gas companies in the U.S. can take advantage of this opportunity to grow their business and invest in offshore fields in Israel. This will benefit both the countries and increase goodwill among the two countries