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The text below was written by Raul Sohr, which in my opinion explains quite well why he seeks dominion over energy resources and their different realities in America, the Middle East and Europe. If you are interested, here is a link for them to download the document directly

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ENERGY AND POWER

Raul Sohr Energy is a form of power. As such, it is desired and can be both a source of wealth and friction. Apply energy integration in South America is recognizing its strategic nature, ie, make their market value inclusive goals with a long-term perspective. To persevere after such objectives requires a clear and firm political will of participating States. The energy integrationist must overcome not only odiosidades old neighborhood. His main obstacle is the powerful vested interests that block the expression is an assumption of economic patriotism.

For Lenin, the formula for success in the emerging Soviet Union was simple: "Soviets + Socialism = electrification." Political power and the means to move the industry would be key to building a new social system. In fact, the equation of Lenin was minimal. It takes more than good government and energy to ensure the welfare of a people. Although both factors are not sufficient condition for success, no one doubts, moreover, necessary.

Peculiarly English electricity is called outright power, or power. The electric power is one form of energy (and is obtained from different sources), with hydrocarbons, the most economically and politically important. As the primary source most versatile, oil dominates the energy market. The oil is concentrated in the Middle East where there are about 60 percent of reserves. The boundaries and the history of this region, throughout the twentieth century, were given in largely by what some call black gold and others have come to call the devil's excrement. The findings vary so far as the oil can act as both a blessing and a curse. The political future of Iraq, Saudi Arabia, Iran, Kuwait and other Persian Gulf emirates is marked by its status large producers of the most sought-after commodity. There are, of course, other elements directly related to power and weaponry. For many oil and other energy sources are simply another commodity. Its acquisition is traded on international markets and prices are set by supply and demand. This is in normal times but everyone knows that energy can also be used as a weapon. The same is true in markets where merchants armaments in peacetime, are lavished on the supply of military equipment.
even a strictly military point of view there are those who say that the key to success is not on the battlefield but in the logistics. They mean it's useless if no one valiant army has the supplies needed for combat. The absence of petrol for the tanks can paralyze even the powerful machines of war as happened in some fronts to the Wehrmacht towards the end of World War II. In Vietnam, the United States devoted much of his effort to break the flow of supplies from North Vietnam to the South. Between 1965 and 1973, were released over two million
tons of bombs on Cambodia and Laos to destroy the supply lines of the communist forces. Cambodia received just over 50 percent of all bombs dropped on Japan during the Second World War. The effort was aimed at blocking the path called Ho Chi Minh, with an average width of 8 miles, ran over a thousand miles under the dense foliage. It was well camouflaged a pipeline that allowed the circulation of ten thousand trucks that were necessary to mount a final assault on Saigon. U.S. General Carl Stiner, who commanded the special forces during the conflict, summed up the importance of supply "approach is plausible that, if the U.S. had found an effective way to block the Ho Chi Minh route in 1962 or 1963, the massive U.S. intervention, 4 years later, it had not happened, perhaps the Vietnam War had ended more happy "(1)

is clear that in war or not available oil can make the difference between victory and defeat. Have powerful weapons, as well as having oil, can be either double-edged sword. That is, can be both a strength and a vulnerability. Strength when you can make full use of resources. Vulnerability does not have the ability to defend them. Have WMD (nuclear, chemical or biological) that can not protect themselves may attract attacks. It happened to Iraq in 1981 fu attacked by Israel which destroyed to its foundations Osirak nuclear reactor, which was about to be launched. He was buried and the declared will of Saddam Hussein to have the "first Islamic nuclear bomb '(2). Iran today faces a similar dilemma.
Same with oil. The power conferred by this source of energy is such that you can also invite more powerful countries to seek, by way of treaty or force control. Put in colloquial terms the things can be done by hook or by crook. Saudi Arabia chose good while Iran went the opposite way. As far as the Saudi royal family established an alliance with the United in the mid-30's. The convergence of interests, consisting of political protection in exchange for oil, resulted in the company famous Arabian Oil Company (ARAMCO). In the case of Iran, there was no agreement for an oil nationalist government led by Muhammad Mossadeq who was appointed after elections in 1951, Prime Minister and without delay nationalized oil. London and Washington instigated in retaliation, a military coup. Western efforts flourished in 1953 when it was established a harsh dictatorship where he starred in a role for the SAVAK, the secret police. The dictatorial regime was overthrown in 1979 recently passed giving intolerant to a government dominated by Islamic fundamentalists.

At the same time that they have abundant reserves of oil and gas, and Russia, use them to influence their neighboring relations. Decreases in supplies to Ukraine and Georgia have reminded these former Soviet republics as the will still depend on Moscow. Venezuelan President Hugo Chavez, meanwhile, has won allies in the Caribbean and Latin American countries with a policy of selling oil at preferential prices. Has sought to extend this political capital even in the U.S. and Britain with offers of oil to lower values \u200b\u200bthan those of less affluent market sectors. An effort to gain supporters and to promote his political philosophy.
There are also cases in which cooperation agreements for the exploitation of raw materials have been the mainstay integrator. This is what happened between France and Germany after World War II. Where some see a threat others saw an opportunity. After three devastating wars in less than a century, Paris and Berlin decided to make the old continent, at last, a place for peace. The key step was to place the industries of coal and steel production under a common authority. Robert Schuman, the French foreign minister and architect of the emerging unification, predicted that Europe would be built "Through concrete achievements from the start creating a de facto solidarity '(3).


1. A policy option


Europe of 25, with a common currency and central bank, is the result of an explicit political will of States belonging. The guiding principle is the collective common good rests on "a de facto solidarity." In this perspective, the philosophy which governs the states is crucial.

If the energy is considered as a mere commodity devoid of strategic importance weakens an integrated vision. From a commercial perspective, the operators of sites and energy sources should consider the best possible return on their investments. It's what they call Anglo-Saxon shareholder value. If that gives the most credit is for export outside the region, that is what it should do. In contrast, if we take an integrative prism in which the collective security and progress gain more importance, progress is measured not only in currency but in a general balance of the benefits of treaties that facilitate trade, open borders , joint ventures and, finally, a relaxed atmosphere and good-neighborly mutual trust deepened.

An example of the benefits of reduced antagonism is what is called the "dividend peace "after the end of the Cold War. At present, South America, defense budgets represent about 25 billion dollars. No further integration will mean the disappearance of military spending countries, but decrease at the same time facilitate increasing the national security of States.

Security is a broad concept that covers many aspects of country life. Which usually receive more attention in the field of states is military security. But everything depends on the circumstances as food safety or health may be as or more decisive. If it is economic, energy security is critical because affects all spheres of national life and, as outlined above, in terms of military deterrence.

begs the question what is the price that a country is willing to pay for their safety. The military tend to think that no price is too high. In the case of well-known defense personnel, stockpiles and operating costs are absorbed entirely by the state. The case of the energy is different because they are often private companies and state, which often operate under strict market criteria, which are to investment, but only to the extent that you get a high return. Otherwise it is a task tax entirely. As a result, the country's energy security can be in the hands of traders that respond naturally to stimulating the best possible return. The security of the nation is not an issue that should worry shareholders meetings who bought securities for dividends.

A comprehensive project on energy for America is a strategic policy decision-reaching, higher costs and risks. This implies planning several decades, strengthening the integrated tool for resource exploitation. Ell means, among other things, to strengthen state enterprises by generating deposits and energy. Failing that, the payment of allowances to cover the gap between market prices and regional cooperation agreements. Such a scheme will find serious obstacles for financing both the private and the multilateral banks. Therefore,
be an act of political will in some cases, it is difficult to justify to voters inclined to "economic patriotism."


2. Latin America

Most South American countries except Chile and Uruguay, have for the time varying degrees of autonomy with regard to energy resources. So there are different emergencies. Paraguay, for example, has more electricity than required but has no oil. Therefore it has been thought about creating a ring energy or other forms of cooperation that allow more effective use under the vast and sometimes difficult geography of the region. The integrating principle is based on partnerships that bring benefits to all parties. But the assessment of what is appropriate depends on the trade policies of each country.
Energy can be an obstacle to integration or a lever to pressure one country over another. Well understood Bolivia under the government of President Carlos Mesa came into vogue as the slogan "No molecule gas to Chile. " Not before Santiago would satisfy the demands of La Paz for a sovereign outlet to the Pacific Ocean. To this point believed that this was the key to realizing their aspirations is reached to raise the gas was "the best ambassador of Bolivia." Retrieved, Evo Morales, before his election to the presidency, why s opposed to the construction of a pipeline that will result in the Chilean port closest to the gas fields, responded with the following question: "What if you bought gas Chile Bolivian mines to feed its large and a day because of a strike, for example, suspend the supply? What would the Chilean government to see that every day is losing millions and millions of dollars? '(4). The Morales scenario is reminiscent of the causes of the Pacific War (1879-83) which cost the province La Paz ocean. Morales then the conclusion was that it was preferable to keep the underground gas before entering into a relationship that he feared would result in a conflict.

national attitudes compared to hydrocarbons should be considered in a scenario in which oil is over. Predictions vary, some believe that in ten years, the demand will exceed supply of oil. Others put the critical moment for two decades. And on energy twenty years, as the tango, they are nothing. Harry Shimp, former president of the British company BP Solar, predicts: "In 20 to 25 years for oil reserves begin to decline so we have this window of time to convert to renewable energy." In fact there will always be oil but not in the required amounts, with ever higher prices and increased difficulties in removal.

One of the reasons for the growing shortage is the rapid increase in demand. China, one of the largest consumers of raw materials in the world, not only increases your appetite, and has tripled its electricity consumption from 1990 to date. The electric power demand in 2003 grew by 15 percent and 10 percent oil. That same year China became the largest oil exporter to net importer. In fact, a number of Chinese cities have already rationing electricity. China is the second largest oil consumer after the United States surpassing Japan. Despite the fact that Chinese per capita consumption is only 12 percent of the U.S. and Japan fourth. The effect of increased global demand, coupled with political instability in the Middle East, rising prices already wreaking havoc on many economies.

The energy issue opens an opportunity for integrative but obstacles concretize are significant. Except Bolivia and Venezuela, other countries do not have a significant surplus. And we know that charity begins at home. The primary duty of any government is to ensure domestic supplies at the best price possible. It depends on economic competitiveness and the welfare of the population.

Ultimately whatever the level of integration that security is achieved each of the countries and all come from diversity. This means having the most varied and there are many renewable sources. The most developed are hydro, wind, geothermal, biomass and photovoltaics. The most popular is the hydroelectric but from large dams are not usually counted as alternative energy. Small core, however, have a low impact on the environment itself are recorded.

A huge field of possible cooperation is the use of ethanol to replace oil. In this area Brazil is by far the world leaders. The program of using sugar cane for ethanol production began in the 80's. It was not an environmental stimulus, but was encouraged by the military in search of greater security energetic triggered after the oil shock in 1973. The soldiers sought to reduce dependence on oil from the Middle East. Where there is a will there is a path and farmers received subsidies to plant sugar cane. Also subsidized fuel prices while increasing the number of vehicles that employed him until he reached a majority. Then the low oil prices, the rise in sugar prices and increasing oil reserves discovered by Petrobras marked the decline of ethanol to mid 90's. In 2003 began, however, a rebound in employment with a new technology for using a mixture of gasoline and ethanol or both separately. So in 2005, 53 percent of cars sold in the country (866 thousand) used the mixture.

As far as nuclear energy, which already has four reactors in South America, two in Argentina and two in Brazil (two more are planned, one in each country), there are serious reservations. Greens, international and local repudiate uranium, enriched, is one of the most polluting and destructive substances. In fact the German government, like many others, and Europe, halted construction of new nuclear plants, if you follow the current course, will have disappeared by 2030 the still existing. The fight against proliferation of nuclear weapons has increased U.S. pressure against the enrichment of uranium. In fact, Brazil faces U.S. efforts to abandon their programs in this direction. This request has been made even more urgent in view of attempts to deny Iran the ability to enrich uranium for future nuclear reactor.
economic and political integration of South America has experienced high and low, lower than high in recent years. Who can not at least be as hard. Hence, for the moment, the challenge of energy integration seems ambitious. A prerequisite for such a process is the existence of leadership, at least one State to take initiatives and some of the political and economic costs. Their absence does not, however, deepen bilateral and trilateral ties and advance the development and exploitation of alternative energy sources, preferably renewable.
(1) Tom Clancy and Carl Stiner, "Shadow Warriors: Inside the Special Forces," London, Sidgwick & Jackson, 2002.
(2) Raul Sohr, "The wars that lie ahead" Barcelona, \u200b\u200bEdiciones B, 2000.
(3) Josepha Laroche, "Politique Internationale", Paris, Librairie Générale de Droit et de Jurisprudence, 1998.
(4) Interview with author Santiago, 2004.