A good gas deal

There is a natural inclination to oppose the natural gas industry's framework. Monopolies are detrimental to the economy, and critics' claims that regulatory supervision is lax and the price is outrageous have solid merit.

Given the circumstances and their conflict of interests, Finance Minister Moshe Kahlon, Welfare and Social Services Minister Haim Katz and Construction Minister Yoav Gallant were right to abstain during Sunday's vote on the deal, and while the deal will continue to meet boisterous opposition, as an Israeli citizen I support it, for various reasons.

The government has undone three previous frameworks agreed upon with Texas-based Noble Energy and the Delek Group, the companies operating the offshore gas fields. Giving foreign investors the impression that Israel's word does not hold water is simply not a smart way of doing business, and given the dismal economic growth projections released by the Central Bureau of Statistics on Sunday, we should be encouraging foreign investments, not deterring them.

Those opposing the deal should heed the following fable: A doctor was urgently called to extract a fish bone lodged in a man's throat. After successfully completing the procedure, the man inquired after the doctor's fee, to which the latter responded, "Please pay me whatever sum you would have spent while the bone was still stuck in your throat."

In other words, would those opposing the deal agree to it had it been presented when the investors were just beginning their explorations, before any of the gas fields were found? Of course they would.

Before getting upset about the billions of dollars the investors, who are willing to assume considerable risks, stand to make off the deal, one must remember that over 60% of projected revenue will go directly to the state's coffers. Those opposing the deal must ask themselves what the state stands to lose if it engages in a lengthy legal battle with the monopoly over controlling interest in the industry. That alone will cost the state billions.

Moreover, even if the framework is revised, potential changes are unlikely to improve on any of the main articles included in the agreement -- only on minor ones. Time is money, and it is not worth wasting neither the time nor the money for such minor improvements, especially considering that as time goes by, more Middle East countries may have similar offshore finds, thus driving natural gas prices down.

This deal, I believe, is the lesser of all evils.

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