02-04 Pipelines

What they are calling a “normalization agreement” between the United Arab Emirates and Israel has the anticipated benefits of tourism and trade. And some far reaching political benefits for President Trump and his policy to work with the Sunni Arab nations in their opposition to the Shia Muslims in Iran.
The Agreement was signed in August, 2020, but its benefits will spin off for years. Look for further deals with other Sunni Arab nations like Bahrain and Qatar.
The bigger issue is that a pipeline built in the days when Israel and Iran were friends will get a new life. It is called the Trans Israel Pipeline, and runs from Eliat in the Gulf of Aqaba which runs off the Red Sea across Israel to Ashkelon on the Mediterranean. My memory of Eilat is that it was a holiday resort with some great beaches.
The map helps people see how super tankers bringing crude oil from the United Arab Emirates enters the Gulf of Aqaba rather than the Gulf of Suez bypassing the Suez Canal. What makes this a big deal is that the Suez Canal cannot accommodate the super tankers.
This pipeline designed originally to carry Iran crude is 42 inches in diameter and 1200 Km long. Now a cheaper source of crude oil will be made available to nations in the Mediterranean area.
It should be no surprise that the Palestinians feel betrayed and that Iran violently opposed the deal. The big winner is Israel. It does not look so isolated in the area.
During my visit to Israel after the death of Prime Minister Rabin, the surprise was Israel trying to accommodate large numbers of Russian immigrants with PhDs. Now Israel is the research centre for over a hundred large US corporations.
For small Arab nations like the UAE, an Israeli partnership means being lifted into the world of new technologies in agriculture, energy renewables, sewage treatment and desalination.
The Middle East is a climate change loser, and the issue of water for drinking and agriculture is critical to all of these nations. And Israel’s unique desalination technology has been purchased in San Diego, California.
Sounds crazy. But new relations for Israel and the Arab world will both encourage the sale of fossil fuels and the development of climate change technologies like solar energy and desalination. Quirky economics.