The Politics of Energy

The populist bloc – Argentina, Venezuela and now Bolivia – when combined with the more moderate left of Chile, Brazil and Uruguay – dominates the population, production and energy resources of the nation, and should it come to an agreement which would allow Bolivia to gain more of the profits from increased NG prices in a world that is hungrier and hungrier for energy supplies, then it is highly likely that Morales will sign on board, and become a key player in the regional energy situation. 

 This is because Brazil sees it self as the next manufacturing hub, and sees energy as one of the key industries. While the Brazilian ethanol program receives the most attention, it is far from the most important initiative in their arsenal. Brazil, for example, plans to use a much larger share of its potential hydro-electrical output, even though hydroplants are regarded as increasingly risky, along with an integrated hydro management program. Brazil has liberalized power generation, while the state power company controls the lines, providers are now allowed to bid to supply power, particularly spike power. However, if Brazil is to vault upwards in its GDP, it needs natural gas plants for electricity.

agonist