This project explores the energy sector in the Western Hemisphere, with a focus on new policy dynamics, strategies and investment opportunities. A few of the countries in the region rely on energy production and revenues to drive investments and economic growth. Most find themselves pressed by volatile conditions in the world market and supply sources. To address imbalances and tap opportunities, countries and businesses find themselves driven to fresh strategies. The project identifies the new approaches, paying particular attention to opportunities for collaboration.
As part of the new strategies, the countries of the Western Hemisphere are implementing or planning new mechanisms for energy cooperation to secure the kinds of investments and infrastructure required for large-scale energy projects. The project considers opportunities and prospects for cooperation, taking into account the factors that have impeded cooperation in the past. Cooperation will enhance the stability of hemispheric demand for producing countries and further develop capabilities to meet rising demands and satisfy social, economic, and political needs.
REGIONAL DEVELOPMENTS AND ISSUES
As globalization expand, many experts forecast that rising consumption will bring about major energy shortages in 30 years. The rush is on to discover new hydrocarbon reserves or develop new technologies. Faced with the prospects of shortages or even the depletion of oil sources, several countries in the western hemisphere are investing in alternative sources of energy. Brazil’s project for converting biomass into energy and that of deriving fuel ethanol from sugarcane presents is a noteworthy example in the development of an alternative source of energy for sustainable development. Brazil appears to have a successful formula for stabilizing its energy supply and promoting an environmentally conscious source of fuel – while also creating a substantial number of jobs (approximately 700,000 jobs with its large-scale production of fuel ethanol from sugar cane).
Throughout Latin America, underground resources are the patrimony of national governments, subjecting them to political and market forces. Currently, Bolivia and Ecuador have initiated processes of renegotiating contracts with foreign producers. Will this cut down further investment from the region or from the outside? Natural gas, the fastest growing primary energy source in Latin America and in the entire world, presents an opportunity for regional energy integration. A large number of countries and firms in the region are developing new policies to face this challenge. Regional integration may provide protection against dependency risks. But, are Latin American countries ready to participate in transnational energy projects? What risks does integration pose? These are some of the many questions this project seeks to address.
