Month: July 2009

National outline plan for the natural gas transmission system in Israel:37 A/1 – onshore southern section from Ashdod through Kiryat Gat to Ashkelon, to Beer Sheva and the Dead Sea 37 A/2 – the offshore section from Ashdod to Dor 37 A/1/4 – connection of the industrial area Rotem and Ramat Hovav 37 A/2/5 – offshore connection of the Egyptian supplier from El Arish to Ashkelon 37 B – the onshore section northwards from Gezer up to Haifa and Alon Tavor 37 C – the onshore section Dor- Hagit 37 D – the onshore section to Hadera 37 E – the offshore section to Palmahim and Shafdan

Namely, state owned oil companies. The national oil companies typically do not operate strictly on the basis of market principles. Because of their close ties to the national government, in many cases their objectives might include wealth re-distribution, jobs creation, general economic development, economic and energy security, and vertical integration. Although these objectives might be desirable from the point of view of the nation’s government, they are unlikely to be equivalent to the maximization of shareholder value, the stated objective of the private international oil companies. Many of these companies have been found to be inefficient, with relatively low investment rates. They tend to exploit oil reserves for short-term gain, possibly damaging oil fields, reducing the longer term production potential. Some also have limited access to international capital markets because of poor business practices and a lack of transparency in their business deals. The evolving strength of the NOCs may affect the availability of supply in the oil market and hence security of supply. Many NOCs have stagnant or falling oil production due to civil unrest, government interference, corruption, inefficiency, and diversion of capital to social spending