Latin American Geopolitics vs. Energy Parterns: Ideology, Energy Production Sustainability, and U.S. Security (A. Cisneros)

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This paper evaluates the trend in Latin America towards resource nationalism in the energy sector as more left-leaning governments have come to pow... (More) This paper evaluates the trend in Latin America towards resource nationalism in the energy sector as more left-leaning governments have come to power. It analyzes how compatible or incompatible the new ideological discourse from some populist/leftist regimes vis-à-vis their domestic energy production sustainability for the medium and long term and their energy trade with key international partners and consumers. Venezuela and Boliva are examined as case studies where ideological changes in governments have affected energy policies. The impact of Latin American geopolitics on U.S. energy imports is also examined, along with the evaluation of the potential U.S. vulnerability to oil supply disruptions from Latin America. The paper concludes that the trend toward resource nationalism raises political risk thereby making future foreign investments in these countries less attractive, which could ultimately be detrimental to overall energy production levels. Over the short term, it is unlikely that there will be major changes in oil flows from Latin America to the United States; however, the United States needs to evaluate mid- to long-range energy security strategies to diversify its oil sources and expand risk management tools such as the Strategic Petroleum Reserve. (This article by Alberto Cisneros-Lavaller, “Latin American Geopolitics vs. Energy Parterns: Ideology, Energy Production Sustainability, and U.S. Security,” was published as Occasional Paper 41. Boulder, Colorado: The International Research Center for Energy and Economic Development, 2007. ISBN 0-918714-67-2 and also as an article in The Journal of Energy and Development, vol. 32, no. 1). (Less)