Israel's oil sector remains highly centralized and until recently, with a significant offshore natural gas discovery, Israel has had essentially no commercial fossil fuel resources of its own, and has been forced to depend almost exclusively on imports to meet its energy needs. Israel has attempted to diversify its supply sources and to utilize alternatives like solar and wind energy. Traditionally, Israel has relied on expensive, long-term contracts with nations like Mexico (oil), Norway (oil), the United Kingdom (oil), Australia (coal), South Africa (coal), and Colombia (coal) for its energy supplies. Israel also has pursued other, cheaper sources of energy, like Egyptian natural gas, and hopes to expand natural gas significantly as a percentage of its energy mix in coming years.
Israel produces almost no oil and imports nearly all its oil needs (around 279,000 barrels per day -- bbl/d -- in 2003). Traditionally, major oil import sources have included Egypt, the North Sea, West Africa, and Mexico. In recent years, however, Israel has stepped up its imports from Russia and the Caspian region (Kazakhstan, Turkmenistan, etc.) and now reportedly gets a majority of its oil from the former Soviet Union. Israel's Oil Refineries Ltd. (ORL) also reportedly has negotiated with Mexico for annual supplies of around 3.7 million barrels (10,000 bbl/d), and in late November 2002, ORL signed a deal to purchase around 10,000 bbl/d from Angola at a cost of $100 million per year.
