Title: REGIONAL INTEGRATION SUSTAINABLE USE OF ENERGY Bolivias Vision
1REGIONAL INTEGRATION SUSTAINABLE USE OF
ENERGYBolivias Vision
Embassy of Bolivia to the EU
Institute of Social Studies The Hague -
Netherlands June 12th
- Click to edit Master subtitle style
Embajada de Bolivia
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2Outline
- Quick Overview of Bolivia
- Basic Principles
- A Change of Paradigm
- Overview of Global Demand
- Overview of Global Investments
- Sustainable Growth and Energy
3Quick Overview of Bolivia in Energy
Largest developed natural gas reserves in the
region 20 Trillon Cubic Feet Proved Reserves
- Reserves concentrated in 4 mega fields.
- 94 of hydrocarbon potential to be explored.
- Hydrocarbon potential in the 9 departments.
- South Americas largest natural gas producer.
- 45 Million cubic meter per day.
- Of which 32 million to Brazil, 3 millon for
Argentina and the rest for internal demand. - Chile is a potential destination as well as
Paraguay - ENERGY IS KEY TO REGIONAL INTEGRATION FOR BOLIVIA
4Basic Principles
- Bolivia has a series of principles for economic
development. - These principles act as guidelines for our energy
policy. - These principles are
- To restore equilibrium between nature, mankind
and energy consumption. (Vivir Bien live
well) - To protect natural ressources under the principle
of national sovereingity. - To fight climate change.
- To use and promote clean energies.
5A Change of Paradigm
Previous model to export or to die 1996 - 2005
Bolivia Natural Gas Reserve
Imposed role Raw Material Exporter open
veins of Bolivia
New Model 2005 and beyond
Bolivia Sovereign To ensure internal demand and
South Cone energy needs. Bolivia is open to
investors under the slogan Partners and not
bosses (socios y no patrones) Evo Morales
Bolivia Natural Gas and clean energy Player
6A Change of Paradigm
- Energy and natural gas are considered strategic
resources. - Bolivia has recovered the full control of the
natural gas chain. - The process started during the Water wars in
September 2000 in Cochabamba. - The Natural Gas war took place in October 2003
in El Alto-La Paz. - The Natural Gas Referendum defined Bolivias
energy policy in July 2004 - President Evo Morales nationalised the upstream
part of the chain in May 1st 2006 - The rest was transfered on May 1st 2008.
7Overview of Global Demand
- Worldwide demand of power products, specially of
oil and gas (to produce mainly diesel and
gasoline), is in continuous growth, whereas the
world-wide supply and reserves tend to decline in
a medium term. - This is critical in the main consuming centers of
energy U.S.A., Europe and Asia. - As a result of previous, oil prices have risen
above 120USD per barrel, natural gas at 12 to
15USD per MMBtu, electricity above 70USD por MWh. - Global tensions to guarantee the access to oil
and gas will intensify in the medium and long
term. - The growth of China and India has caused the
competition to ensure fuel sources. - The constant rise of the prices or the lack of
energy can cause damage to the global economy. - Global warming poses a serious treath to the
humanity.
8Overview of Global Investment in Energy
1. According to tje International Energy Agency,
16 TRILLION US Dollars (16.000.000.000.000 dls.)
will be needed until the year 2030 2. That makes
an anual average of 550 Thousand million USD. 3.
Between 2020 and 2030 investment growth will
probably be even larger. 4. HALF OF INVESTMENT IN
DEVELOPING COUNTRIES
9Sustainable Growth and Energy
- Technology transfer is essential. Europe has the
more efficient and environmental-friendly
technologies. - Emphasis should be made on clean energies such as
natural gas, windfarms, geothermal, hydro power
and solar. - Nuclear energy is coming back, but it has to be
assessed properly given its long term
consequences (site pollution). - There is room for a potential long-term LAC-UE
association since most of our countries
(Argentina, Bolivia, Brasil, Colombia, Ecuador,
Peru, Mexico, Venezuela, Trinidad) have energy
excess. - On the other hand smaller countries of the region
(Central America, Caribbean) need to access to
technology to be self-sufficient in energy.
10Sustainable Growth and Energy
- Rational use of the windfall of natural gas.
- Increase from 600MMUSD to 3BUSD from 2005 to
2008. - Creation of Government Funds to Childhood and
Pension Retirment - Rational use of Governement Funds increase of
Central Bank reserves from 2BUSD in 2005 to 7BUSD
in 2008. - Reserves useful to remedy the impact of La Niña
Phenomenon in 2008.
11Sustainable Growth and Energy
- Investment is the other part of the puzzle.
- We believe in more balanced relationships that
take into account the sovereignity of each
country and the interest of both reguions - Partnership with Latin American companies (be it
state-owned or private) and European is a path
that should be explored. - Global warming fighting is a common task and both
regions can take the leadership.
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