How to save money in Israel’s gas market

July 21, 2021 0 Comments

Gas prices in Israel are soaring and gas consumption has doubled since the start of the year.

But it’s not all bad news for the average Israeli, as the price of gas can rise a little every month or so.

It’s no wonder why Israelis are desperate to save as much as they can while avoiding a gas shock. 

It’s a dilemma that gas prices and consumption are increasingly having a negative impact on Israel’s economy, as gas consumption is expected to grow by more than a third by 2030. 

But as of last December, gas consumption had already exceeded the growth rate in the previous years, according to an International Monetary Fund report. 

The IMF report stated that, in the last few years, the rate of growth in the use of gas in Israel had slowed to a rate of less than 1 percent.

In other words, gas use has doubled in a relatively short time.

The IMF forecast that the use rate would continue to increase by 1 percent per year, until it reaches a level of 6 percent by 2030, the year of the gas shock, according the report.

The report said that in 2030, gas would be consumed at around 40 percent of the energy consumed in Israel. 

While the IMF predicted that gas use would continue growing in Israel, in a new report released by the World Bank, they also warned that gas demand would likely remain on the decline in the next five years.

The World Bank’s World Energy Outlook, released in October, predicted that the world will need to consume at least 30 percent more energy by 2050 to meet the world’s energy needs, down from the current level of 30 percent.

 The report said in a statement that the decline of the oil price in the years following the shale gas revolution in the U.S. and elsewhere in the world has had a significant impact on gas consumption. 

“The cost of natural gas in the US and elsewhere has been driven down by shale gas and other unconventional gas exploration in the United States and elsewhere,” the World Energy Council said.

“The US and Europe have been able to reduce the costs of natural Gas by 20 percent in the past five years and this could continue. 

In contrast, the cost of conventional gas in Russia has declined over the past decade, and gas demand has fallen substantially in many of Russia’s energy regions,” the report said.

“However, Russia has not yet reduced its dependency on coal and is likely to remain a net importer of natural and liquefied natural gas for several years, which could lead to a further decrease in demand.

In order to meet energy needs in the future, the Russian government will have to reduce its reliance on coal as well.”

 According to the World Oil Outlook released in May, the price for crude oil in the Middle East rose from $105 per barrel in 2014 to $124 in 2020, and by 2020, the average price for oil had fallen to $50.

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