Lugar encourages energy cooperation with Chile
Congressional Desk
April 26, 2007
U.S. Sen. Dick Lugar has asked the Bush Administration to broaden U.S. relations with Chile into energy cooperation.
Energy partnerships with Chile could contribute to reducing the potential for tension over energy resources, expanding reliable energy supplies, expanding the use of renewable energy, and reducing the detrimental effects of energy import dependence,” Lugar wrote in a letter to Assistant Secretary of State for Western Hemisphere Affairs Thomas Shannon. Shannon is representing the United States at the World Economic Forum on Latin America in Santiago.
As the Chilean government seeks to diversify Chile’s energy supply, your visit provides an opportunity to engage with your Chilean counterparts to promote cooperation between the United States and Chile on energy security and business opportunities. This could complement President Bush’s new initiative with the Brazilian government on accelerated development of sustainable biofuels production, research and infrastructure.”
On the first day of the current Congress last January, Lugar introduced the Energy Diplomacy and Security Act, S. 193. The bill "recognizes energy security to be a foremost concern for United States national security and would realign our diplomatic priorities to meet energy security challenges." It calls on the Administration to invigorate existing bilateral energy partnerships and seek new ones with key producing and consuming countries, with a special emphasis on increasing the use of sustainable energy sources. The bill, which has been approved by the Senate Foreign Relations Committee, calls on the Administration to weave a more reliable energy security fabric within the Western hemisphere, working more closely with Canada and Latin America on emergency preparedness, conservation, sustainable energy and energy access for the poor.
In March, Lugar introduced the Brazil Energy Cooperation Pact of 2007, S. 1007. The purpose of this bill is to promote cooperation between the United States and Brazil to develop partnerships with interested countries to promote energy security. The bill focuses on accelerated development of sustainable biofuels production, research (particularly in next generation biofuels) and infrastructure. It also creates a diplomatic platform for accelerated attention to other energy security topics in the Western Hemisphere.
Chile has limited domestic energy resources and is dependent on imports for the bulk of its energy needs. Chile currently imports almost two-thirds of its primary energy consumption. In 2005, Chile imported 98 percent of its oil, 96 percent of its coal, and 75 percent of its natural gas. As a result, it is extremely vulnerable to the volatility of international prices and/or supply interruptions,” Lugar wrote to Shannon.
Chile’s government is implementing an ambitious Energy Security Action Plan that seeks to diversify Chile’s energy matrix, achieve greater energy independence and encourage the efficient use of energy. This effort pays particular attention to biofuels and renewable fuel options. The growing interest in these areas stems from the 6-7 percent annual increase in electricity consumption, an increase that has fueled the demand for new sources of energy generation.”
Lugar noted that, “Chile and the United States enjoy an excellent relationship and longstanding commercial ties. Today, more than ever, our countries work together on a range of important issues, not least of which is promoting free trade. In that regard, Chile is a noteworthy success story - evidence that democratic governance and open markets bring a better standard of living.
The U.S.-Chile Free Trade Agreement has been in force for just over a year. By all accounts, it has been of major benefit to both countries, increasing bilateral trade by 30 percent in 2006. The United States remains Chile’s number one trading partner with two-way trade in merchandise topping $8 billion. The FTA also encourages foreign investment in Chile, another component of Chile’s economic success.”
More information on the Lugar Energy Initiative can be found at http://lugar.senate.gov/energy.
Energy partnerships with Chile could contribute to reducing the potential for tension over energy resources, expanding reliable energy supplies, expanding the use of renewable energy, and reducing the detrimental effects of energy import dependence,” Lugar wrote in a letter to Assistant Secretary of State for Western Hemisphere Affairs Thomas Shannon. Shannon is representing the United States at the World Economic Forum on Latin America in Santiago.
As the Chilean government seeks to diversify Chile’s energy supply, your visit provides an opportunity to engage with your Chilean counterparts to promote cooperation between the United States and Chile on energy security and business opportunities. This could complement President Bush’s new initiative with the Brazilian government on accelerated development of sustainable biofuels production, research and infrastructure.”
On the first day of the current Congress last January, Lugar introduced the Energy Diplomacy and Security Act, S. 193. The bill "recognizes energy security to be a foremost concern for United States national security and would realign our diplomatic priorities to meet energy security challenges." It calls on the Administration to invigorate existing bilateral energy partnerships and seek new ones with key producing and consuming countries, with a special emphasis on increasing the use of sustainable energy sources. The bill, which has been approved by the Senate Foreign Relations Committee, calls on the Administration to weave a more reliable energy security fabric within the Western hemisphere, working more closely with Canada and Latin America on emergency preparedness, conservation, sustainable energy and energy access for the poor.
In March, Lugar introduced the Brazil Energy Cooperation Pact of 2007, S. 1007. The purpose of this bill is to promote cooperation between the United States and Brazil to develop partnerships with interested countries to promote energy security. The bill focuses on accelerated development of sustainable biofuels production, research (particularly in next generation biofuels) and infrastructure. It also creates a diplomatic platform for accelerated attention to other energy security topics in the Western Hemisphere.
Chile has limited domestic energy resources and is dependent on imports for the bulk of its energy needs. Chile currently imports almost two-thirds of its primary energy consumption. In 2005, Chile imported 98 percent of its oil, 96 percent of its coal, and 75 percent of its natural gas. As a result, it is extremely vulnerable to the volatility of international prices and/or supply interruptions,” Lugar wrote to Shannon.
Chile’s government is implementing an ambitious Energy Security Action Plan that seeks to diversify Chile’s energy matrix, achieve greater energy independence and encourage the efficient use of energy. This effort pays particular attention to biofuels and renewable fuel options. The growing interest in these areas stems from the 6-7 percent annual increase in electricity consumption, an increase that has fueled the demand for new sources of energy generation.”
Lugar noted that, “Chile and the United States enjoy an excellent relationship and longstanding commercial ties. Today, more than ever, our countries work together on a range of important issues, not least of which is promoting free trade. In that regard, Chile is a noteworthy success story - evidence that democratic governance and open markets bring a better standard of living.
The U.S.-Chile Free Trade Agreement has been in force for just over a year. By all accounts, it has been of major benefit to both countries, increasing bilateral trade by 30 percent in 2006. The United States remains Chile’s number one trading partner with two-way trade in merchandise topping $8 billion. The FTA also encourages foreign investment in Chile, another component of Chile’s economic success.”
More information on the Lugar Energy Initiative can be found at http://lugar.senate.gov/energy.
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