PENA SPEECH TO HEMISPHERIC ENERGY MINISTERS IN CARACAS
USIA
USIS Washington File
20 January 1998
TEXT: PENA SPEECH TO HEMISPHERIC ENERGY MINISTERS IN CARACAS
(Two-day conference held January 15-16) (2280)
CARACAS -- To satisfy rapidly increasing demand for energy in the
Western Hemisphere over the next 20 years it will be necessary to
develop the region's own energy resources and to build on the strong
record of energy dependence within the hemisphere, according to U.S.
Secretary of Energy Federico Pena.
Speaking January 15 during the opening of the Third Meeting of
Hemispheric Energy Ministers, Pena said that "ample development of the
energy resources in the Americas is absolutely essential to meet our
growing demand for energy and provide diversification to protect our
hemisphere against economic disruption from political instability in
other regions."
Discussing energy interdependence in the hemisphere, he said that "it
is becoming increasingly clear that trade in energy and energy-related
goods and services across international borders is the means by which
we will satisfy our growing energy demand and also promote economic
growth throughout the hemisphere."
Pena said the challenges can be met "if we keep in mind our mutual
goals of continued economic growth and increased environmental
protection."
Following is the text of Pena's speech:
(begin text)
It is my great pleasure to serve as the co-chair of the Third Meeting
of Hemispheric Energy Ministers. Minister Arrieta, may I also say how
much I have appreciated working with you as the co-chair of our
hemispheric energy activities.
Our meetings over the next two days present us with tremendous
opportunities. We can present our vision for energy development in the
Americas and agree to concrete actions to make that vision a reality.
As energy ministers, we guide a critical sector that is the engine for
our economic development; we can bring economic opportunities to rural
communities; and we can ensure the environmental health of our cities,
nations, and our planet.
Since the 1994 Summit of the Americas in Miami, we have been working
together to implement the Summit's energy commitments agreed to by our
heads of state. This meeting presents us with our final opportunity to
measure our progress on these initiatives before the Summit of the
Americas in Santiago. It is also an opportunity to ensure that our
progress continues.
I would like to begin this morning by setting out what I hope we can
accomplish in the next two days. The goals for this energy ministerial
are four-fold:
-- First, recognizing the need to strengthen our cooperation, we can
formalize the hemispheric activities through the development of a
Secretariat;
-- Second, we will work to develop a joint declaration on the
governmental actions we need to take to facilitate the integration of
energy markets;
-- Third, we will be informed by formal private sector participation
in the hemispheric process. This is vital, as it is increasingly clear
that the private sector will be providing the vast majority of
investment in energy infrastructure necessary to carry us into the
21st century;
-- Fourth, we will help shape the Santiago Summit, an opportunity for
our Heads of State to lead the world in addressing global challenges,
including next steps following the Kyoto Conference on climate change.
It is also my profound hope that because of the actions we take here
in Caracas, in Santiago our governments will be able to agree to
implement market-based regulatory, fiscal and legislative frameworks
by the year 2000 that will facilitate cross-border energy
infrastructure development and trade in energy and energy-related
goods and services.
Global Perspective
As we move toward the Santiago Summit, I want to take a step back for
a moment and consider in a global context the challenges that we face
in this hemisphere. Why did we hold the 1994 Summit of the Americas in
Miami? Why are we holding the 1998 Summit of the Americas in Santiago?
Clearly, part of the answer is that we have mutual economic goals. But
when I accompanied President Clinton on his October visit to South
America, the President stated that this is about more than economics.
He said, "We also want to be genuine partners in seizing all the
opportunities and meeting all the challenges of this new age. It's
about far more than just trade figures; it's also about political
partnerships, the preservation of democracy, the strengthening of the
social contract to include all people who aspire to better lives, and
the ability to build a future that is consistent with the dreams of
those who founded all our nations."
As we, the energy ministers of our nations, work together to help
build that future, we must keep in mind three critical facts that will
determine the role that the hemisphere will play:
-- First, between now and 2015, energy consumption in Central and
South America alone is expected to grow at an average of three percent
per year -- making this one of the fastest growing regions in the
world;
-- Second, we have established a strong record of interdependency
within the hemisphere upon which we can build. For example, Canada,
Mexico, and Venezuela are consistently among the top four suppliers of
oil to the United States;
-- And third, our hemisphere is rich in energy -- petroleum, natural
gas, hydropower, geothermal and wind resources, to name just a few.
The Americas currently produce more than a quarter of the world's oil
supply. Ample development of the energy resources in the Americas is
absolutely essential to meet our growing demand for energy and provide
diversification to protect our hemisphere against economic disruption
from political instability in other regions.
Increasingly, we are realizing that we live in a global economy. For
example, we saw that the recent decline in oil prices affects not one,
but all of us. And, as we seek to increase our energy security through
development in other parts of the world, such as the Caspian Sea, we
must keep in mind our shared hemispheric interests.
Dramatically increased demand for energy over the next 20 years
presents both opportunities and challenges to governments throughout
the hemisphere. It is my belief that we can best meet those challenges
and reap the benefits of those opportunities if we keep in mind our
mutual goals of continued economic growth and increased environmental
protection.
Continued Economic Growth
It is becoming increasingly clear that trade in energy and
energy-related goods and services across international borders is the
means by which we will satisfy our growing energy demand and also
promote economic growth throughout the hemisphere.
Since the Miami Summit, significant progress has been made throughout
the Americas in opening energy markets, partnering with the private
sector, and creating a climate favorable to trade and investment. As
energy ministers, our continued leadership in these areas will be key
to future success.
As we continue to push for fast track authority in the United States
and as we move toward a Free Trade Area of the Americas, we have the
opportunity to lead the hemisphere in market liberalization and
integration.
In my view, energy market integration has two vital components. First,
markets are integrated through trade in energy and energy related
goods and services. Second, markets are integrated by increasing the
physical interconnection of energy systems -- that is, by increasing
private investment in major energy infrastructure projects crossing
international borders.
Energy market integration is not just some abstract concept, but a
concrete reality. Our energy markets are increasingly becoming
physically connected to one another, and cross-border energy trade is
growing at a breath-taking pace.
The U.S. has traded natural gas and electricity with Canada and Mexico
for many years. However, the pace is intensifying, with proposals for
new pipelines to bring natural gas from Canada into the U.S., and new
interconnections between the U.S. and Mexico.
And of course, in recent years, we have seen increasing energy trade
in South America. The Bolivia-Brazil natural gas pipeline is underway,
and in the not-too-distant future will facilitate Bolivian exports of
natural gas to meet growing energy needs in Brazil. We also see plans
for exports of natural gas and electricity from Argentina to Brazil,
and the construction of infrastructure to facilitate those exports.
And, Central America has put forth a proposal to complete the
integration of their electric power markets by the year 2000.
Along with the construction of cross-border energy projects and energy
trade comes economic growth, job creation, increased prospects for
education, increased environmental health, and an increase in the
standard of living for all of our people throughout the hemisphere.
This is the prize we all are seeking through the work we do here this
week -- better lives for all of our people.
But if we are to reap these benefits, our countries must continue to
attract private investment in major energy infrastructure projects.
The Business Forum that began yesterday demonstrates the enormous
value of the private sector's perspectives on the issues we face.
Now, it is up to us. I issue a challenge to the governments of this
hemisphere. We must act boldly by developing and implementing, by the
year 2000, laws, regulations and policies that foster the necessary
private investment in energy infrastructure projects and promote
increased energy trade among nations.
Increased Environmental Protection
As we take these actions, it is important to emphasize that economic
growth and environmental protection are not mutually exclusive goals.
In fact, environmental protection actually spurs economic growth.
Perhaps nowhere is this more true than when we are discussing the
crisis posed by global climate change. I recently learned that, when
written in Chinese, the word "crisis" is composed of two characters.
One represents danger and the other represents opportunity.
That is how we should view the challenge of global climate change. It
represents both a threat and an opportunity -- a threat to the beauty
of our natural environment and the future of our children. And an
opportunity to develop new partnerships and innovative technologies to
overcome the threat.
Permit me to share what some of those opportunities are and the role
that we all can play in taking advantage of them. Investment in energy
efficiency reduces consumption while making our industries more
competitive. Development of renewable energy increases our energy
security by relying on local resources. And both benefit the
environment.
As the hemispheric energy ministers, we are in a position to lead each
of our nations and the entire hemisphere in developing policies to
address the global climate change. Already, several countries have
demonstrated their commitment to addressing this challenge. For
example, Costa Rica and Central America have led the way in promoting
joint implementation policies. And Argentina has demonstrated its
leadership by deploying advanced technologies for its natural gas
market and using renewable energy for its rural electrification
initiative.
Through rural electrification initiatives in Bolivia, 400 families who
previously had no access to electricity recently received solar
systems. Using economically competitive, environmentally friendly
systems, such as solar and wind power, we are literally bringing light
into the lives of people who once could not afford it.
I also want to commend Brazil's delegation for their leadership at the
Kyoto conference on global climate change. The Clean Development
Mechanism that was adopted in the Kyoto conference represents a
significant opportunity for all of us. Here at the ministerial meeting
we have the opportunity to step out in front to share strategies,
policies, and projects for appropriate domestic and international
implementation to promote clean and efficient energy.
Energy efficiency projects produce a quick return on investment,
rapidly generating a profit while reducing our demand for energy.
The U.S. Government is the single largest user of energy in the
country; by investing in energy efficiency, we can stimulate the
market for energy efficient products and support the growth of our
energy service industry. I look forward to strengthening our
hemispheric cooperation on energy efficiency, replicating successful
programs and projects throughout the region.
As part of the U.S. strategy to address climate change, President
Clinton has launched a $5,000 million energy technology initiative
which by reducing costs and providing incentives will ensure the rapid
adoption of clean and efficient energy technologies. In addition to
our domestic actions, we look forward to implementing the
international partnerships and projects resulting from the agreement
in Kyoto.
I want to emphasize that global climate change is a global problem and
it requires a global solution. Whether replicating strategies or
implementing joint projects through our private sectors, we need the
meaningful participation of every nation in creating a better future
for our children. If I may use the words of the Great Liberator Simon
Bolivar to call us to action on this important issue -- "Vacilar es
perder.... To hesitate is to lose."
Let us not hesitate to address the issue of global climate change. And
to address it in a way that promotes constructive dialogue among all
concerned parties. If we hesitate, we will lose. And what we risk
losing is our children's future. That is a price we do not want to
pay.
In conclusion, let me say that I believe the journey from Miami to
Santiago has been an exciting and productive one. Each of us, as
neighbors and friends have contributed tremendously to the successes
achieved along the way. But the journey does not end at Santiago. The
journey toward our shared goals of economic growth and environmental
protection continues well beyond Santiago. It continues into the next
millennium.
Let us go forth, taking note of the milestones we have passed, but
always keeping our eyes on the distant horizon and the opportunities
that it presents us.
(end text)