Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Arab Spring Hits Israel's Natural Gas Supply

Politics / Middle East Mar 16, 2012 - 03:39 AM GMT

By: OilPrice_Com

Politics

As last year's Arab spring has slowly roiled eastwards from Tunisia to the eastern Mediterranean, the two most concerned governments are the U.S. and Israel, that are watching their carefully constructed defense alignments crumble to the populist forces unleashed.


After decades of repression, the Arab "street" is finding its democratic voice, which is rejecting the cozy decades-long security and energy arrangements carefully stitched together by Washington to ensure Israeli security. In the "brave new world" emerging, it is increasingly obvious that the post-Arab Spring governments, inhaling Western democratic ideals relentlessly promoted as the way forward, have a radically different agenda than those proposed by Washington and Tel Aviv.

Viewing social upheavals decades ago, in 1973 Henry Kissinger, President Nixon's Secretary of State commented prior to the CIA overthrow of the democratically elected government of Chilean socialist President Salvadore Allende "I don't see why we need to stand by and watch a country go communist due to the irresponsibility of its people."

Now the Arab spring seems to be embracing two policies anathema to Washington - a rejection by Egypt of its ties to Israel, carefully fostered by assassinated Egyptian President Anwar Sadat and his successor, Hosni Mubarak, Egypt's President until 13 months ago, when the Arab spring populist uprising unseated him and his administration's cozy energy arrangements with Israel, which provided Tel Aviv with 2/5 of its natural gas import requirement needs.

In a development largely overlooked in the Western press, in an evening session on 12 March the Egyptian People's Assembly demanded the deportation of the Israeli ambassador Yaakov Amitai, and the withdrawal of the Egyptian ambassador from Tel Aviv.

And oh, the nullification of the country's natural gas sales to Israel.
The People's Assembly vote was unanimous.

Why?

As a protest against Israel's recent campaign against the Palestinians in the Gaza Strip, which the Egyptian Assembly considers a flagrant violation of human rights.

Newly founded Egyptian democratic handwriting on the wall? Assembly speaker Saad al-Katatny asked a special parliamentary committee to follow up the implementation of the demands with the government, releasing a People's Assembly statement commenting, "Egypt after the revolution will never be a friend of the Zionist entity, the first enemy of Egypt and the Arab nation," demanding that the Egyptian government review all its relations and agreements with that "enemy" along with calling for stopping Egyptian natural gas exports to Israel.

So, how serious a threat?

Egypt is the Arab's world's largest country and has played a central role in Middle Eastern politics for decades. In 1979 Egyptian President Anwar Sadat made peace with Israel under terms of the Camp David agreement. Sadat's initiative led to Egypt being expelled from the Arab League for a decade, and in 1981 Sadat was assassinated by Islamic extremists, to be succeeded by Hosni Mubarak, who ruled Egypt until February of last year, when the "Arab Spring" swept him from power.

The tenuous peace established by the Camp David accords, liberally lubricated by massive U.S. aid, endured until February 2011, and quite aside from marginalizing the Arab world's military superpower, further paid off Israel with the opening in 2005 of Egypt's $500 million East Mediterranean Gas Company Ltd. (EMG) pipeline, which supplied 40 percent of Israel's natural gas through an underwater pipeline from the Egyptian city of El Arish on the northern Mediterranean coast to the Israeli port of Ashkelon.

The East Mediterranean Gas Company Ltd. was established in 2000 and is jointly owned by Egyptian General Petroleum Corp., which owns 68.4 percent of the venture, and its 170 million cubic feet of gas per day of exports and met nearly half of Israel's natural gas needs until the Arab Spring swept Cairo a year ago.

The latest Egyptian National Assembly vote puts that at risk.

But it's not as if Tel Aviv has been unaware of the consequences of Cairo's "Spring," as the East Mediterranean Gas Company Ltd. Pipeline has been bombed 13 times since Mubarak's overthrow, most recently on 5 March, and remains closed at present.

The National Assembly's motion at present remains largely symbolic because only Egypt's current government, the Military Council, can sign off on such decisions.

That said, the vote is a startling manifestation of the feelings of the Egyptian people, and, as such, can hardly be ignored in the Middle East's rising embrace of democratic values, as assiduously promoted by Washington. The only problem for the U.S. is that Egyptian voters had a somewhat different perception of what being able to choose in their foreign relations entailed, and after decades of Mubarak's rule, have a somewhat different view of the future from their Washington 'advisers."

Egyptian voters have resoundingly rejected Washington's exhortations and accordingly, Israeli consumers had better be ready to turn down both their thermostats and air conditioning, as the winds of change of the Arab Spring continue to roil the Middle East and bring new political realities into being, undoubtedly not all to Washington and Tel Aviv's liking.

Source: http://oilprice.com/Energy/Natural-Gas/Egyptian-Israeli-Natural-Gas-Contract-Casualty-of-Arab-spring.html

This article was written by Dr. John CK Daly for Oilprice.com who offer detailed analysis on Crude Oil, Geopolitics, Gold and most other commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit: http://www.oilprice.com

© 2012 Copyright OilPrice.com- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in