Study: Oil Nationalism Growing in Latam

A U.S. military study on energy security reportedly has warned growing oil nationalism in Latin America could threaten future supplies from that continent.

The Financial Times says it obtained the study by the military’s Southern Command. The Times said the study comes on the heels of a U.S. congressional investigation into threats from Venezuelan President Hugo Chavez about cutting off shipments to the United States.

The military study was quoted as saying several countries in Latin America are widening state control over energy production and this is discouraging new investments needed to increase output. The region accounts for 8.4 percent of the world output but 30 percent of U.S. energy imports.

Among concerns, the report cited Venezuela’s effort to double the taxes on oil production by multinationals, Bolivia’s decision to nationalize oil and gas fields, and Ecuador’s seizure of several oilfields from Occidental Petroleum. In Mexico, the report said, production is stagnating because of restrictions on foreign investment.