Energy transfer steps in Latin America, especially the oil sector and its companies that contribute to high carbon emissions, are in line with the United States and Europe finding alternatives to Russia’s energy imports.
This comes in the light of plans by the US and European countries to expand the circle of sanctions against Russia, and the EU is considering a ban on Russian oil. Compensate for the lack of Russian energy supply.
The pro-US and European bias (as an alternative to Russian supplies) in Latin American countries ‘distribution supports these countries’ energy conversion programs, especially as the prices of electricity generated by renewable energy sources fall and make them better alternatives. , For energy conservation or climate projects.
The Latin American countries are the second largest in the world in owning clean electricity, as clean electricity generated from sources (solar, nuclear, thermal, water, air and bio) accounts for 61% of the electricity in those countries, the company said. Statistics. Actis Capitol Investments, headquartered in the United Kingdom.
Invasion of Ukraine … and Renewable Alternative
Luisa Palacios, a senior researcher at Columbia University’s Center for Global Energy Policy, confirmed that the former head of the US – based oil refinery CIDCO has revived talks about energy security for the Russian invasion of Ukraine.
At the same time, he pointed out that tackling energy conservation issues is accompanied by the presence of several exceptions, which can be extended to a year or a year and a half.
Palacios said Ukraine’s invasion is an opportunity to emphasize ensuring energy security through reliable and environmentally friendly sources, and as an alternative to Russian energy imports, to attract the United States and Europeans, as well as an opportunity for energy conversion projects in Latin America. Investments.
He pointed out that the renewed energy crisis caused by the invasion of Ukraine proved that Latin America’s dependence on renewable energy sources to generate electricity at low cost. Arcos Media Concerned with energy issues.
Energy conversion projects in Latin America
Latin America’s energy conversion projects continue locally, and national oil companies have responded to those plans in line with the environmental and community management of climate targets.
When looking at energy conversion projects in Latin America, the response rates between these companies vary, and Luisa Palacios acknowledged that national oil companies listed on the stock exchange respond more than others to energy conversion projects in Latin America. Reliable energy conversion programs to access markets and funding.
It has taken steps to gradually decarbonize the examples of several national oil companies in Latin America, including the Brazilian company Petropras, working to build its portfolio, sell most of its marine assets and focus on marine production; To produce a barrel of oil at a cost of $ 35.
Unlike the Brazilian company, the Colombian company EcoPetrol plans to switch from an oil company to an energy company – in a move similar to that of European companies – and the decline in its reserves has strengthened that hierarchy.
Palacios drew attention to YPF’s interest in establishing a subsidiary to invest in renewable energy, from Brazil and Colombia to Argentina, and is one of the largest reserves of shale gas outside the United States.
Will Latin America drop oil?
Energy conversion plans in Latin America are not easy, and these countries are heavily dependent on oil and natural gas.
And Louisa Palacios, using the expertise of state oil companies based on project management and the utilization of their financial resources, proposed one of the appropriate solutions to “adapt” the oil sector to support the goals of energy transformation.
Although the Latin American oil and natural gas sector is deeply dependent on guaranteeing export and financial revenues, he stressed that this does not preclude its contribution to supporting time-consuming energy conversion projects.
Palacios called for the necessary funding to expand oil investments, open new markets for exports and support energy conversion projects to benefit from its revenues.
Energy conversion programs in Latin America are attracting foreign investment to expand projects that support these projects, especially renewable energy projects.
While the political battle over the leadership of the state-owned Petrobras in Brazil continues, the country plans to work with the Italian company Enel to meet growing electricity needs through clean and renewable energy projects.
In mid-March, the Brazilian Electricity Regulatory Authority approved clean power projects with a total capacity of 464.57 MW.
Meanwhile, energy conversion plans look a bit slower in Argentina than in Brazil.
Argentina’s oil production rose to an 11-year high in February, with the renewable energy sector making little progress since 2018.
As for Colombia, it is seeking to expand hydrogen exports to Europe via the Netherlands in parallel with the operation of the oil sector, and the two countries have begun to discuss the matter technically and marketably.
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