The two-day Energy Summit of the South American Community of Nations (CSN) concluded on April 17 in Porlamar, Venezuela. Government heads and representatives from 12 South American countries attended the meeting. It also attracted more than 500 journalists as international oil prices remain high and South America is one of the world's most important energy supply bases.

The meeting, initiated by Venezuelan President Hugo Chavez, focused on seeking new modes of energy cooperation between countries in the region. Chavez believes that South American countries usually exchange their resources for investment by signing extraction and service contracts with foreign companies, taking their revenue from oil profits. However, when it comes to actual oil production, governments are virtually shut out. He criticized the elite in these countries for partaking in the evil, long-term practice of fattening their own wallets and looting resources.

Now, major energy exporting countries in South America have regained control of oil and natural gas through nationalization programs, but this has resulted in reduced investment by western oil companies whose interests have been hurt. These countries are now in a difficult situation as energy resources have long been an important means by which to grow the economy. Bolivia, for example, is among the poorest South American countries, despite having bountiful natural gas reserves.

Chavez has proposed that South American countries rely on themselves, pool existing technologies and strengthen cooperation to tap regional resources together. He also advises pegging energy development to social progress and poverty alleviation. The summit's statement calls on countries, organizations and enterprises, in the process of energy integration, to take long-term national interests into consideration, balance the interests of regional countries and promote common development and social justice. Venezuela has set an example: its oil companies spent US$13.26 billion US dollars, up 92 percent from the previous year, on social programs in 2006 in an effort to meet their social responsibilities.

South American countries believe that energy cooperation has become the driving force of regional integration. During his Latin America tour earlier this year, US President George W. Bush signed an agreement with Brazil on the development of ethanol as a substitute for oil, which was criticized by Venezuelan and Cuban leaders. Before the meeting people doubted whether there was enough unity among Latin American countries, but during the summit the countries didn't argue about new energies so the conflict was subdued. Chavez firmly believes that only energy can consolidate South American unity and only a united South America can change the regional energy history and build a new international energy order. The Summit called on developed countries not to consume unlimited energy. South American countries will accelerate energy complementarity, striving for real national independence through energy cooperation.

The Summit decided to enhance CSN's role in promoting regional energy integration, and named the program the "South American Combo", with the secretariat of the organization headquartered in the Ecuadorian capital, Quito. This is an effort to coordinate stances in energy development, tap resources in a sustainable way, readdress regional economic imbalances by supplementation and work towards final integration. South American countries will map out a long-term energy development plan and guidelines for CSN integration. A common long-term blueprint is especially needed for energy infrastructure construction. The Summit also decided to establish a special energy commission in CSN to coordinate related affairs. Chavez has also suggested reforming the existing Andean Community and the South American Common Market to change their nature as pure trade organizations.

South American energy integration, which requires substantial funding, will not be achieved in the short term by relying solely on regional capital, analysts say. So the countries have also discussed major projects including natural gas pipelines and are planning to establish a Southern Bank to raise money. They will also discuss signing a detailed energy cooperation agreement.

By People's Daily Online