The media is reporting the discovery of oil near the Dead Sea. Expected yield is very low, but it raises hopes that there might be more in the area. From All Headline News:

A nationally-held Israeli exploration company announced Wednesday that it had discovered oil near the Dead Sea.

Speaking on Israel’s Channel 10 News, Dr. Eli Tenenbaum of Genco said that after drilling to a depth of 1.2 miles, “we noticed that the pressure in the area was very high and when we opened the tap, oil started flowing freely for several minutes.”

Dr. Tenenbaum said the reserve could contain as much as six million barrels of oil, giving it an estimated commercial value of $300 million.

“We hope it was the first of many [such discoveries],” he added.

Genco started its work 10 years ago, but was forced to stop due to the high costs of its operations. But with oil prices soaring, the government recently gave the company the go ahead to resume exploratory drilling.

Infrastructure Minister Binyamin Ben-Eliezer told The Jerusalem Post that the government is now ready to back any company that wants to try to find oil inside the borders of Israel.

Dead Sea from west, Sept. 27, 2006

UPDATE (10/11): The Jerusalem Post has more details, including a major new investor.

You could be forgiven for thinking that a new problem has been discovered and a rapid response is underway from the Sunday Times article, “Race is on to save the Dead Sea.” In fact, a Red Sea-Dead Sea aqueduct has been considered by Israel and Jordan for at least a decade. Whether or not the current discussions are more serious is difficult to know. The article notes that the flow of the Jordan River into the Dead Sea is 7% of what it was before the countries began diverting its flow. The declining level (cited at 1 meter/3 feet per year) is certainly causing problems with sinkholes and unstable terrain.

The article suggests that Jordan is most interested in the project because the bulk of it would be done on their side, with outside financing. Despite the hopes that a joint Arab-Israeli project would increase peace prospects, the way that this project stands the best chance of succeeding is if it is largely constructed by one country or the other.

It seems like every year or so, there’s a new story on the decline in the water level of the Dead Sea. The level now stands at 1334 feet (417 m) below sea level down from 1255 feet (392 m) a century ago. At its current rate, it will be 1490 feet below sea level in the year 2050. This article in Globes has many more details.