Israel's Main Energy Resource Could Run Out by 2040, Businessman Warns

Businessman Ofer Yanai, controlling shareholder of Nofar Energy, has warned that Israel's primary energy resource, natural gas, could be depleted as early as 2040. Yanai, speaking at The Jerusalem Post 2026 conference, stated that current forecasts predict the depletion of the offshore gas reserves by 2044, assuming 100% utilization. However, he cautioned that if utilization drops to 80%, the reserves could be exhausted by 2040, a date he described as "tomorrow morning." Yanai highlighted the increasing energy demands, particularly citing the impact of Artificial Intelligence (AI) on consumption, and questioned the recent halt in approvals for new large server farms to connect to the electricity grid.

Yanai argued that approving a proposed increase in gas utilization would triple Israel's energy consumption, accelerating the depletion timeline from 20 years to just five. He stressed the urgent need for larger energy sources, suggesting solutions such as a major gas pipeline, large-scale LNG facilities, and nuclear power. "We need to do much more and are doing nothing," he stated.

He also criticized Israel's bureaucratic system for energy policy, contrasting it with the private sector's ability to make strategic moves. Yanai noted that while a previous energy minister performed well, the frequent rotation of officials every four years, coupled with political considerations, hinders effective long-term energy planning. He believes the system's issues prevent the implementation of necessary strategic actions.