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Regional Focus – The Americas
Latin American Energy Policy in the Obama Administration
a report by
Scot W Anderson
Davis Graham & Stubbs LLP
Jeffrey Davidow, the former US ambassador to Mexico, characterises • co-ordination of green energy across national borders;
the relationship between the US and Mexico as analogous to that of a • promotion of energy independence throughout the region;
bear and a porcupine – stumbling and prickly.
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The metaphor holds for • creation of a programme within the US Department of Energy to
the relationship between the US and much of Latin America. While allow efficient distribution of climate change technology;
South America is not as closely tied to the US economy as Mexico, the • pursuing mechanisms to allow carbon emission reductions in
ties are significant, particularly in the energy sector. Latin America developing countries without preventing their economic growth;
provides nearly one-third of US oil imports.
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Thus, however awkward • enforcing environmental standards in trade agreements; and
their relationship, the US and Latin America will inevitably remain • creation of a new forum for the largest greenhouse gas emitters.
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connected through energy development.
Obama’s vision of an energy partnership for the Americas focuses on
During his campaign for the presidency, Barack Obama made a significant climate change, green energy and similar issues. It tells us very little
speech in Miami in May 2008, discussing his vision of the forward about how the Obama administration intends to address the
relationship between the US and Latin America. He described “a new development of oil and gas resources in the Americas. The Obama
partnership for the Americas”.
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As a general principle, the Obama administration has indicated that it plans to end US imports of oil from
administration hopes to restore the traditional leadership of the US in the the Middle East and Venezuela within 10 years.
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It is no surprise
Caribbean and Latin America. It is significant that Obama couched this that the Obama administration would like to diminish its reliance
pledge in the context of an express concern that Hugh Chavez may on Venezuelan oil imports. The relationship between the US and
threaten “oil markets and regional stability”.
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Oil and gas development Venezuela is likely to remain rocky. Hugo Chavez recently consolidated
fundamentally affects the relationship between the US and Latin America. his power in Venezuela, making him a force to be reckoned with in
Venezuela and Latin America for the foreseeable future.
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The US faces
Obama’s vision of this new partnership, as set out in his Miami speech, similarly difficult relationships with other countries in Latin America.
includes a substantial emphasis on energy issues: Ecuador’s President Rafael Correa recently expelled a US official,
accusing him of treating Ecuador like a colony.
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Evo Morales of Bolivia,
“If the United States does not step forward, we risk being left a Chavez ally, similarly enacted a new constitution that, among other
behind. And that is why we must seize a unique opportunity to lead things, allows him to seek a second term as President.
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These leaders
the region toward a more secure and sustainable energy future. may resist initiatives to join the new partnership proposed by the
Obama administration.
“All of us feel the impact of the global energy crisis. In the short
term, it means an ever-more expensive addiction to oil, which The rhetoric of the Obama administration indicates a willingness to
bankrolls petro-powered authoritarianism around the globe, and engage with all the countries of Latin America. Latin American leaders
drives up the cost of everything from a tank of gas to dinner on the have been cautiously optimistic about an Obama administration.
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table. And in the long-term, few regions are more imperilled by the Nonetheless, it is equally clear that the Obama administration will push
stronger storms, higher floodwaters and devastating droughts that back against anti-American initiatives. For example, in his Miami speech,
could come with global warming. Whole crops could disappear, Obama noted that “in the 21st century, we cannot treat Latin America
putting the food supply at risk for hundreds of millions. and the Caribbean as a junior partner, just as our neighbours to the
south should reject the bombast of authoritarian bullies”.
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Obama is,
“While we share this risk, we also share the resources to do something first and foremost, an American leader. Consequently, many in Latin
about it. That’s why I’ll bring together the countries of the region in a America foresee the Obama administration bringing about a change in
new energy partnership for the Americas. We need to go beyond tone, but not a major change in substance.
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Hugo Chavez has
bilateral agreements. We need a regional approach. Together, we can questioned President Obama’s ability to reduce US dependence on oil –
forge a path toward sustainable growth and clean energy.”
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and expressed his view that for countries that “produce and import oil,
I think we should all agree to respect our sovereignty with the US”.
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A key component of the overall partnership between the US and Latin
America envisaged by Barack Obama is a specific “energy partnership While one can see the bear and the porcupine in such statements, the
for the Americas”. This partnership would include: advent of the Obama presidency changed the dynamic between the US
and Latin America. Chavez, who routinely skewered the Bush
• research and development of clean coal technologies; administration, has expressed some desire for reconciliation with the
• development of the next generation of sustainable biofuels and US, while at the same time noting that he hopes “Obama doesn’t start
solar and nuclear energy; to resemble Bush”.
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For countries such as Venezuela and Bolivia, which
© TOUCH BRIEFINGS 2009
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