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8 | CYNTHIA J. ARNSON AND JESSICA VARAT 9. Oxford Analytica, May 15, 2008, op. cit. 10. According to the Energy Information Administration, Argentina boasts the third- largest proven natural gas reserves in South America after Bolivia and Venezuela. 11. Alexei Barrionuevo, “Underwater oil discovery to transform Brazil into a major exporter.” International Herald Tribune, January 11, 2008. 12. Mark P. Sullivan et. al., op. cit., 2008, p.3. The Venezuela figure does not include reserves in the Orinoco Belt. [Ed.] Energy and Development in South America José Miguel Insulza The discussion of energy in Latin America departs from three basic and shared premises. The first is that energy is a central concern of every country in the world, regardless of its size or importance in global affairs. The second is that energy is an essential component of development. The third is that there has also been a strong relationship between energy and politics, especially oil and politics. Beginning in the late 1960s, powerful interests in small energy supplying countries began to exert greater control of their energy resources. In the early 1970s, Latin America, along with the rest of the world, experienced the first major increase in oil prices and had the beginning of a discussion about its implications. The issues are not very different today than they were forty years ago. By any measure, the region does not lack energy resources; in fact, an analy- sis of the Americas as a whole or of Latin America and the Caribbean reveals that energy resources are abundant. Latin America possesses 9.7 percent of the world’s proven reserves of oil, and contributes 13.8 percent of world output. At the same time, Latin America consumes only 8.1 percent of world oil produc- tion, making the region a net exporter of 3.3 million barrels of oil a day. These figures, of course, are due to increase in light of the recent discoveries of major oil and gas deposits in Brazil’s Bacia de Santos (Santos Basin). In other areas of energy production, there is also an abundance of hydroelec- tric power and natural gas in the region. New gas deposits have been discovered at a high rate in the past few years. Why, then, should Latin America be so con- cerned about energy? What are the threats and the problems associated with its production and use? Why should the region not simply be satisfied with the sur- plus it produces? For despite Latin America’s apparently advantageous situation with respect to energy, all countries—whether suppliers or consumers—face problems; there is concern throughout the Americas about the inability to sup- ply reliable and affordable energy to meet national and regional needs.PDF Image | Energy and Development in South America
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