The energy sector in the State of Israel has made tremendous progress since natural gas started to be used in 2004 with the development of the Yam Tethys reserve. For the first time since the establishment of the country, Israel began making significant use of energy from domestic sources. This major development for the Israeli energy industry overall and for the domestic natural-gas sector in particular can be pinpointed to having taken place between 2009 and 2010, which is when the huge Tamar and Leviathan natural gas fields were discovered. For the first time in the history of the country, energy resources were found at a scope that was far greater than the local economy's demand. The State of Israel was able to enter the exclusive group of countries that have enough local energy capacity to allow for export.

Besides these major natural gas discoveries, other fields have also been discovered, such as Karish, Tanin, Shimshon, and Dalit. Surveys conducted by the Israeli Ministry of Energy and the United States Geological Survey show great potential for the discovery of other natural gas fields in Israel's territorial waters that may be double the size of those discovered until now. The potential also exists for finding billions of barrels of oil.