The Cabinet is considering a proposal by Deputy Finance Minister Zvi Dinstein that Israel prospect for oil in the Sinai, it was learned today. Dr. Dinstein, who oversees Israel’s oil Industry on behalf of the Treasury, forecast that the Egyptian oil wells at Abu Rodeis, now being operated at full capacity by the government-owned Netivei Neft oil company, will run dry within ten years.
According to his report, the Sinai is far more likely to yield oil deposits than any area within Israel’s pre-June 1967 borders. His report implied the belief that Israel will remain in occupation of the Sinai for an indefinite period.
It is believed that the government’s decision on Dr. Dinstein’s proposal will be influenced by the increasing pressure the oil producing Arab states exert on Western oil companies. In addition, Israel’s own oil requirements are growing rapidly as the Abu Rodeis reserves diminish. Israel is expected to require ten million tons of oil annually by 1975 and 15 million tons by 1980.
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