(photo credit: REUTERS)
State revenues obtained from royalties on natural resource development is expected to increase fourfold by 2020 to about $2.1 billion per year, National Infrastructure, Energy and Water Ministry forecasts revealed on Monday.
The cumulative revenues from 2014 to 2020 for natural gas, oil and other natural resource royalties – not including those from the Dead Sea – will add up to about $9.7b., the ministry said. The contribution of natural gas is to be the highest, accounting for about 94 percent of the revenues from royalties.
“The collection of royalties provides the state with a stable source of income,” said National Infrastructure, Energy and Water Minister Silvan Shalom. “Revenues from natural resources enrich the state coffers and increase the investment in education, welfare and other fields, for the citizen’s benefit.”
Annual revenues from natural resource royalties are expected to climb to $2.1b. annually in 2020, four times as much as those in 2013 and 10 times as much as those in 2012, according to the ministry.
A particularly sharp increase in the amount of revenues received by the state will likely occur in 2018, after the start of natural gas production from the large Leviathan reservoir, the ministry added.
The predicted figures were based on a number of estimates, such as production amounts, sales price, date of production commencement and many other parameters that could impact the figures if changed, the ministry acknowledged.