Central America talks energy ambitions

Central American nations are making ambitious plans to improve the region`s energy sector, though experts are expressing doubts whether any, or even one of them, can come to fruition.

Perhaps the most ambitious project of all — and perhaps the least attainable — is a $6.5 billion refinery that would pump an estimated 360,000 barrels a day. Both Panama and Guatemala are reportedly being considered by private, and yet unnamed investors, to host the facility.

Wishful thinking and political and economic positions could be deluding some nations into believing their own rhetoric, noted other analysts. Skyrocketing global energy prices, of course, also play a factor in leaders` lust for homegrown energy options, they said.

Take for example the case of Venezuelan President Hugo Chavez and the proposed monumental task of creating a South American gas pipeline, a conduit for the country`s estimated 148 trillion cubic feet of natural gas reserves.

‘Oil will gradually run out around the world and more and more countries will turn to gas. Latin America will also have to switch to gas,’ Venezuelan Oil Minister Rafael Ramirez said earlier this year, hoping to drum up support for the project. ‘In fact, it`s much more efficient to generate energy using gas than with oil.’

Monsters and Critics