This book examines the internal and external implications of Israel’s natural gas discoveries in the Eastern Mediterranean. The nation’s changed status from being an importer of coal and oil to that of an exporter of natural gas has consequences not only for the energy sector but also for the fragile geopolitics of the region.The book: Explores the challenges and issues of energy economics and governance; Analyses Israel’s gas diplomacy with its neighbours in the Middle East and North Africa and its potential positive impact on the amelioration of the Arab-Israeli conflict; Studies how Israel can avoid the deleterious impact of the Dutch disease once the government’s share of the export revenues start flowing. The author traces a consummate picture of history, politics, and conflicts that shape the economics of energy in Israel and its future trajectories. A major intervention in Middle East studies, this volume will be of great interest to scholars and researchers of energy studies, development studies, strategic studies, politics, diplomacy, and international relations. It will also be of interest to government agencies, think-tanks, and risk management firms.