The 1992 conference on Latin America`s Energy Industry: New opportunities for growth through international investment and trade

Conference · Tue Dec 01 04:00:00 EST 1992

OSTI ID:10190896

Liberal economic and political reforms in Latin America, a declining oil market in the US, and world events such as last year`s Persian Gulf Crisis are making foreign investment in Latin America`s energy sector increasingly attractive. The Persian Gulf crisis indicated the US must diversify oil sources; increased competition and deregulation in electric power generation and gas production are providing more opportunities for independent power producers at home and abroad; and Latin America`s need for foreign financial and technical assistance are providing an important ``pull`` factor. Electricity needs in the developing world wig be huge in the years to come. In Latin America and the Caribbean, 66,500 mg of new capacity will be required by 1999. The developing world will require US $100 billion in energy investment a year. But Latin American countries will have trouble obtaining funds. The region will need to rely heavily on private international sources to finance future energy requirements. Multilateral development bank participation win remain critical, however, serving as a catalyst for government reform and private investment in the sector. In particular, World Bank lending will be focused on countries with a clear commitment to pricing reform, regulatory reform, competitive markets, non-market barriers, and technology transfer. Opportunities for foreign participation in the Latin American oil sector are particularly large in Ecuador, Peru, Argentina, and Venezuela. Mexico`s plans for reform in the oil sector, a delicate issue in that country, appear to be less defined and likely to occur farther into the future. The conference made clear that a regulatory entity is needed even when the sector is owned by the government. Regulatory processes must be fair and transparent in order to ensure adequate financial and technical performance.

• Research Organization: Institute of the Americas, La Jolla, CA (United States)
• Sponsoring Organization: USDOE, Washington, DC (United States)
• OSTI ID: 10190896
• Report Number(s): CONF-9203189--; ON: DE93001385; NC: NONE
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290500
294002
294003
296000
ARGENTINA
BOLIVIA
BRAZIL
CHILE
COLOMBIA
ECONOMIC DEVELOPMENT
ECUADOR
EL SALVADOR
ELECTRIC POWER
ELECTRICITY
ENERGY SOURCE DEVELOPMENT
FINANCING
HONDURAS
INTERNATIONAL RELATIONS
LATIN AMERICA
MARKET
MEXICO
NATURAL GAS
PERU
PETROLEUM
REGULATIONS
RESEARCH, DEVELOPMENT, DEMONSTRATION, AND COMMERCIALIZATION
TECHNOLOGY TRANSFER
USA
VENEZUELA