The Energy Situation in the Western Hemisphere

Cooperation on energy issues is much greater in North America than in South America. The best contrasts are the cooperative Canada-U.S. relationship and the antagonistic Bolivia-Chile standoff. Many of the most intractable problems within hemispheric countries are brought on by defensive nationalism, such as Ecuador’s turbulent relations with foreign oil companies and Mexico’s unwillingness to allow private equity investment in oil exploration and production. There is often a sharp difference between rhetorical objectives and concrete actions to reach these objectives. The hemisphere has no more been able to integrate energy policy than it has trade policy—and each of these failures comes at a high cost.