An Energy Future for Pittsburgh and Israel

Pittsburgh and Israel are on the verge of, if not already in the middle of, becoming energy titans. For years, Israel was known for innovation in solar technologies, water technologies and other alternative energy and conservation initiatives due to a lack of natural resources. Pittsburgh was one of the early oil-producing states in the U.S. from the 1800s to early 1900s. Now both are in the middle of a natural gas revolution: Israel with tremendous offshore reserves and Western Pennsylvania with Marcellus Shale.

Estimates of the major gas reserves off the coast of Israel, in the Leviathan, Tamar and Tanin fields, run as high as 30 trillion cubic feet of natural gas. While those estimates are dwarfed by the size of the Marcellus Share reserves (estimated to be between 141 trillion and 400 trillion cubic feet), they are sizable nonetheless, potentially ensuring Israel's energy independence for generations to come. The only debate is whether, and how much of, the offshore natural gas should be sold for export. Moreover, the petrochemical manufacturing potential that results from a thriving natural gas pipeline is a potential game changer for the economies in Israel and Western Pennsylvania.

Major international players are involved in Israel's offshore gas play. For example, Noble Energy is a partner in the Leviathan exploration and Gazprom has signed a deal to purchase liquefied natural gas from Israel. The players in the Marcellus Shale are also some of the leading companies in U.S. natural...