This report discusses Israel's historical dependence on energy imports, and the recent offshore natural gas discoveries that could possibly make Israel a prominent exporter of natural gas. This report also discusses how development of the recently discovered natural gas fields could affect Israel's economy and energy security, and how Israel may or may not consult with the U.S. or other natural gas producting countries while weighing its options.

This report provides information on the United Nations (U.N.) framework and process for options being discussed regarding possible Palestinian statehood, including overviews of the following topics: the U.N. and recognition of states, observer status in the United Nations, and the criteria and process for United Nations membership. The report also analyzes the prospects for avoiding U.N. action by reaching an Israel-PLO agreement to resume negotiations, as well as the possibility of a compromise U.N. resolution that could set forth parameters for future Israeli-Palestinian negotiations but stop short of addressing the question of Palestinian statehood beyond expressing aspirations.

This report explores the history of U.S.-Israeli relationships and current Israeli issues such as border security, defense, Israel-Palestinian conflicts, economy, and democracy.

Israel has been dependent on energy imports since it became a nation in 1948, but the recent offshore natural gas discoveries could change that and possibly make Israel an exporter of natural gas. Development of the recently discovered natural gas fields-Tamar, Dalit, and Leviathan- likely will decrease Israel's needs for imported natural gas, imported coal, and possibly imported oil. A switch to natural gas would most likely affect electric generation, but could also improve Israel's trade balance and lessen carbon dioxide emissions.