Israel’s Unnatural Dreams For Its Natural Gas
October 23, 2013 § 6 Comments
On Monday, Israel’s High Court cleared the way for Israel to export 40% of its new natural gas bonanza after rejecting petitions that challenged the government’s export plan. The Israeli government harbors high hopes of reaching $60 billion in profits over the next two decades from natural gas exports, and so the High Court’s decision is being celebrated as paving the way for an economic windfall. The problem is that there are some very big and intractable regional issues that have to be settled before Israel sees even a shekel from gas exports, and the prospect for all of this coming together is quite slim. If anything, Israel’s natural gas fields are going to end up sparking competition and regional destabilization rather than the opposite.
There are two ways for Israel to export its natural gas. The first is via pipeline to Turkey and hooking up with the planned TANAP or TAP pipelines in order to send Israeli gas to the rest of Europe. The prospects of Israel and Turkey cooperating on a pipeline deal at this point are laughable when the two sides cannot even agree on something as basic and simple as compensation for the Mavi Marmara deaths, not to mention the most recent unpleasantness between the two countries. Let’s assume for a moment though that cooler heads are able to prevail and mutual economic interests override the basic domestic politics of both countries, there is still a thornier problem of geography. A pipeline from Israel to Turkey has two possible routes. The first runs through Lebanon and Syria, which is a non-starter for all sorts of obvious reasons. The second route is undersea and has to travel through Cyprus’s exclusive economic zone. Given the animosity between Turkey and Cyprus and Turkey’s adamant insistence that is does not and never has occupied any part of Cyprus, reconciliation between these two parties over an issue that has been dubbed a diplomats’ graveyard is not on the horizon. It is true that there are many good reasons for a deal to happen, from the fact that there is a lot of money at stake to the fact that Turkey is completely isolated on the Cyprus issue and is the only country in the world that even recognizes the Turkish Republic of Northern Cyprus as an independent state, but that doesn’t mean that movement is imminent. Greek Cypriots overwhelmingly rejected a painstakingly negotiated federal model in 2004, and there is no reason to think that opinion on this has changed. What this means is that a pipeline, which would be the most cost-effective and easiest solution, is out for now.
The other way for Israel to export its gas is to liquify it and ship LNG to Turkey and other destinations. This comes with its own set of challenges as well. The first is that liquifying natural gas is an expensive process that reduces profit margins as compared to shipping it via pipeline. On top of the process itself, it requires building an LNG terminal that takes approximately 3-5 years to build and costs somewhere between $5 billion and $10 billion, which cuts into profits even further. An LNG terminal is unlikely to be built in Israel itself due to legal and environmental challenges, which again leaves Cyprus as the natural partner, but absent reconciliation between Turkey and Cyprus, shipping LNG to Turkey from a Cypriot LNG terminal is likely off the table. Without a Turkish market for gas, Israel is not going to expend the time and resources to build a LNG terminal in Cyprus to then have it essentially be bricked. Even assuming that Turkey and Cyprus are able to patch things up and Israel goes the LNG route, the security challenges posed by protecting an Israeli LNG terminal that is in Cyprus rather than in Israel and then protecting Israeli tankers plying the waters of the Eastern Mediterranean are enormous. Israeli ships carrying Israeli natural gas are immediately going to become an attractive target for all manner of jihadi and terrorist groups, and the Israeli Navy does not now have the capacity to protect such a potentially large venture.
So the bottom line is that a boom in natural gas exports is not assured by any means. No matter which way Israel turns, the path to huge profits from natural gas is complicated by geopolitics that have so far proved immune to easy resolution. In the short term, the answer is likely to send natural gas to Jordan, which will be profitable to a limited extent since Jordan is not a very big market. Another cheap alternative with much larger potential is to export to Egypt, but despite Energy Minister Silvan Shalom’s insistence that this avenue is open, the Egyptians claim that they have no interest in buying Israel’s natural gas.
Looking at the bigger picture, Israel’s long term problem may be more serious than simply not having a viable market for its exports. Turkey and Egypt both project very high growth in energy demand with no real energy resources of their own at the moment, and they are sitting next to countries – Israel and Cyprus – that are resource rich and with whom they do not have great relations. In addition, there are claims on Eastern Mediterranean gas fields being made by Lebanon and by the Palestinians in Gaza, not to mention Northern Cyprus’s claims to the fields claimed by the Cypriot government. How these tensions will be resolved is unclear and anyone’s guess, but a very combustible situation is developing, and the idea of major resource conflict at some point is not all that far-fetched. Should the Israel-Turkey-Cyrpus triangle not get resolved to each party’s relative satisfaction, the Eastern Mediterranean may very well become a lot less placid.
Turkey’s “Democratization” Package
October 10, 2013 § 3 Comments
Ten days ago, Prime Minister Erdoğan and the AKP released the details of their long-promised and long-awaited democratization package, which had been hyped for months as a major initiative aimed at correcting imbalances righting wrongs in the Turkish political system. Since I am late to the game here, I am not going to do a deep dive into everything it entails – a summary can be found here – but most commentary, as typified by this column by Amanda Paul, has focused on the fact that the new proposals are good in some ways and fall short in others. In other words, a decent start but not far enough.
This is definitely one way to view the package. Another way is to think about it through the prism of how the AKP views democracy. In June 2012, Steven Cook and I wrote a piece for Foreign Affairs in which we contended that the AKP was expanding Turkish democracy when you look at measures of participation – meaning the extent to which citizens are able to participate in democracy – but limiting Turkish democracy when you look at measures of contestation – meaning the ability to contest the government’s power. The democratization package appears to break down along this dichotomy, which is unsurprising. Much of the package makes life a little easier for Kurds by allowing Kurdish-language education in public schools; allowing the use of the letters q, w, and x, which are found in Kurdish but not in Turkish; allowing Kurdish and other languages to be used in election campaigns; restoring former Kurdish names of majority-Kurdish villages in southeastern Turkey. These measures allow Kurds to participate in Turkey’s political and civic life to a larger extent. Other measures that affect the general population do the same, such as allowing government employees to wear headscarves ( which is unabashedly a good thing, no matter how many scary columns you read about the “Islamization of Turkey”).
When it comes to contestation though, there is nothing to cheer about. The proposal to lower Turkey’s electoral threshold to enter the Grand National Assembly from 10% to 5% is not actually being proposed as a law, but is being proposed simply as a topic for debate. Furthermore, the proposal to create single-member districts (rather than keep a system of proportional representation) or to keep a system of partial representation and create districts of 5 or so members would almost certainly benefit the AKP and maintain or increase its percentage of parliamentary seats. In addition, hoped-for proposals on reforming the anti-terror law – which is increasingly used as a cudgel against journalists and government critics – were absent. If it wasn’t clear to everyone that the AKP cannot stand to be challenged in any way even after this summer’s events, it should certainly be clear now. When this government talks about expanding democracy, it only means it in a very narrow sense (and even then, it apparently doesn’t mean it if you happen to be Alevi rather than Sunni).
There is still another way to view this democratization package, which is that it actually intends to do the precise opposite of what it claims. There is a proposal to establish a hate crimes law that would impose three year prison sentences on anyone who commits a crime based on someone’s or some group’s language, ethnicity, nationality, skin color, gender, disability condition, political views, philosophical beliefs, religion, or sect. In theory this sounds like an effort to protect minorities, but given the Turkish government’s track record of prosecuting students who protest against Erdoğan or pianists who insult Islam, I would bet nearly anything that the hate crimes law will be used to go after AKP opponents and critics. Nearly any speech can be criminalized and punished at the government’s behest under this legislation, and Erdoğan has unfortunately demonstrated that he has no qualms about cracking down on things he simply doesn’t like or finds offensive. There is a good chance that the most far-reaching and significant part of this “democratization” package will be an element that does not enhance Turkish democracy but instead greatly weakens it. So yes, there are ways in which the government’s efforts to improve Turkish democracy may be a good start, but there are also ways in which “this doesn’t go far enough” is not quite the criticism that should be leveled. It’s not the absence of certain elements in this proposal that worries me so much as the inclusion of others.
My Blogging Hiatus
October 9, 2013 § 17 Comments
Hopefully some of you will have noticed that I have not written a blog post since the last week of August. This seems like a good time to explain why.
First, the good. I successfully defended my dissertation this morning, so I am now officially no longer a Ph.D candidate but an actual Ph.D. Finishing the writing and editing took some time, as did making sure I actually knew what I had written, and so in the interests of not getting distracted by outside stuff, I figured it would be good to lay off blogging until the process was behind me. Getting a Ph.D. is a funny thing, since nothing is substantively different now than it was a few hours ago; I am no more or less knowledgeable, no better or worse a writer, no sharper or duller an analyst, yet somehow those three letters confer an added level of credibility. Whether that means that some will take me more seriously or that some will expect a higher level of analysis I can’t say, but I am certainly glad to have it behind me.
Next, the bad. On the afternoon of September 4, just a few hours before the beginning of Rosh Hashanah and the onset of the Jewish new year, my mother passed away after a far too brief eight month battle with a brain tumor. Her diagnosis came out of the blue and was a death sentence, and she hung on valiantly for as long as she could but ultimately succumbed. My blogging had been a lot lighter in 2013 for that reason, as my mom was diagnosed in early January and my family and I logged a lot of hours going back and forth to NY every two weeks to visit her. Since she passed away, I have not been in the frame of mind to devote the time and attention to the blog as it requires, and so despite all of the things going on in Turkey, Israel, and the wider world, I have kept the blog dark.
This is all to say that it is time to get back into things, and I plan on picking things back up next week. I hope that my readers forgive me for the time away, and that I actually have some readers left.