Palestinian oil and gas

In the late 1990s, the Palestinian government was able to secure an agreement with British Gas that allowed them to begin drilling for natural gas and oil in the Mediterranean Sea.

After years of drilling and exploration, Palestine was rewarded with an oil reserve 22 miles off of the coast of the Gaza Strip. The entire country was excited by this natural mineral that would hopefully provide them with the economic freedom and financial stability they desired. Unfortunately, the financial success did not come directly on the heels of their discovery.

International instability and internal political strife has made it extremely difficult for Palestinian officials to utilize their newfound resource. In 2005 Israel delivered a major blow to the Palestinians fledgling oil industry by choosing to import natural gas from Egypt. By doing this, Israel completely bypassed its neighbor in favor of making a political statement.