Bolivia to Export Gas - or Populism

Summary


A referendum in Bolivia today could have a profound impact not only on the future of that country, but on the energy self- sufficiency of the Western Hemisphere. A vote on five awkwardly- phrased questions could open the way for the country to export natural gas to U.S. and Mexican markets. Given the shortage of natural gas in North America and the abundance of the resource in Latin America, the way Bolivia votes will be materially and symbolically important.

According to a study released last week by Cambridge Energy Research Associates (CERA), the United States faces a potential crisis in natural gas along the scale of the crude-oil crisis of the 1970's. Despite substantial investment and near-record levels of onshore U.S. gas drilling, gas production continues to fall in the United States, although 94 percent of America's new power plant capacity built in the last five years is fueled by natural gas, according to the CERA study.

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Bolivia to Export Gas - or Populism

Bolivia has the second-largest known gas reserves in Latin America behind Venezuela. Venezue...

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