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12 | JOSÉ MIGUEL INSULZA produce emissions laden with sulfur or mercury, nor do such plants emit gases that contribute to global warming, particularly carbon dioxide. Considering the current prices for solid fuels, it is very possible that energy from nuclear plants would be cheaper than energy produced by oil, natural gas, and even renewable sources such as solar, wind, and bio-mass. Nuclear energy constitutes an option available to countries that do not have sufficient sources of energy and are not likely to have them in the future. Nuclear energy can lead to energy self-suffi- ciency for medium and large countries and foster integration in smaller coun- tries, such as those of the Central American region. Without energy security there can be no security for development. Energy security, in turn, is associated with the diversification of the energy matrix and especially the use of renewable energy. In pursuing energy security in Latin America, there is no substitute for cooperation and integration. While some leaders in Latin America and the Caribbean seek integration and the comple- mentarities of their energy matrices, there is also ample discussion of the notion of self-sufficiency. But self-sufficiency and integration are, to a certain extent, contradictory, and at some point countries must choose between these two paths. The tools to advance energy cooperation and integration are well known. They include developing interconnectedness among countries to deliver energy resources and electricity. Finally, I must say that the integration schemes themselves must be plausi- ble. One does not start, for example, by proposing a pipeline that will take at least fifteen years to build or by making promises that are impossible to keep. The success of integration requires taking all the necessary steps, starting with the initial yet fundamental ones, including investments and the harmonization of policies, codes, and standards, that would make Latin America more compet- itive in world energy markets. NOTES 1. The United States is not efficient either: Europe has more or less the same economic output as the United States, but a unit of production in Europe requires less than 75 percent of the energy used in the United States. Energy Integration in Latin America: Limits and Possibilities Francisco Rojas Aravena Strategic natural resources such as energy in all of its forms have always been cen- tral to a nation’s foreign policy design and its insertion in the international arena. Energy can make an essential contribution to the development of cooperative policies, just as it can constitute a crucial element of conflict. In Latin America over the last decade, energy has served both as the impetus for integration initia- tives and as a source of tension and conflict. As in no other region, energy in Latin America is inseparable from politics. In the words of European parliamentarian and president of the European Energy Foundation Rolf Linkohr, “energy nation- alism, together with long-standing territorial conflicts and the lack of investment, creates difficulties for what should be a long-term objective—the strengthening a common energy market. Some alliances exist, but much remains to be done.”1 Latin America accounts for 12 percent of world production of natural gas, and the largest reserves are concentrated in the Andean nations of Bolivia, Peru, and Venezuela. The region is a net exporter of oil and energy in general, but the dis- tribution of resources is highly unequal: Venezuela (PDVSA), Brazil (Petrobrás), and Mexico (PEMEX) together account for 90 percent of oil reserves in the region. Developing energy resources requires long-term strategies; for such long- term strategies to be viable, trust is an intangible and decisive asset. Energy projects require investments of great magnitude in such areas as prospecting, production, transport, and storage. Both the state and markets play essential roles in defining viable long-term energy strategies that contribute to national development and foster mutually-beneficial international cooperation. In Latin America there is no shared regional energy strategy. There are linkages, but no shared vision or a mutually-beneficial collaborative plan. For such a thing to exist would require a strategic political plan that identifies integration as way to leverage national and regional growth and development.PDF Image | Energy and Development in South America
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