Western Hemisphere countries supplied the United States with about 46% of total crude oil and petroleum product imports and almost 50% of U.S. crude oil imports in 2007. Three countries in the hemisphere—Canada, Mexico, and Venezuela—account for the lion's share of U.S. crude oil imports from the region while other Latin American and Caribbean countries account for the balance. Other significant oil producers in the region include Ecuador, Brazil, Colombia, Trinidad and Tobago, and Argentina. In terms of proven oil reserves, the Western Hemisphere has some 321 billion barrels, about 24% of reserves worldwide. Venezuela is second in the hemisphere with 87 billion barrels of proven oil reserves. This figure does not, however, include as much as 270 billion barrels of extra-heavy and bitumen deposits from the Orinoco Belt in central Venezuela, though proven oil reserves will likely amount to no more than 20% of this amount once the deposits are certified as recoverable. The United States has the largest share of proven natural gas reserves in the hemisphere, with 211 tcf or 39% of the hemisphere's total, followed by Venezuela, with reserves of 166 tcf, Canada with 58 tcf, Bolivia with almost 27 tcf, and Trinidad and Tobago with almost 19 tcf. Energy and Latin America's Political Environment

High oil prices have spurred the rise of resource nationalism in several Latin American countries, which has raised concerns about access to energy resources and political interference with the level of energy production and investment in the region. Such nationalism often develops as a response to conditions of poverty, and appears to be strongest in countries where people believe that they are not benefitting from the exploitation of their countries' natural resources. Yet many analysts assert that such nationalism is a logical outcome of higher energy prices and closely follows the actions taken by energy-producing countries around the world that want to capture more of the profit from their natural resources. Oil and related products accounted for some 96% of Venezuela's exports to the United States in 2007. Support for Countries Dependent on Energy Imports

While oil and gas producers such as Venezuela, Mexico, Argentina, Bolivia, Colombia, Ecuador, and Trinidad and Tobago are net energy exporters, most other Latin American and Caribbean nations are net energy importers. With the exception of Trinidad and Tobago, most Caribbean and Central American nations are highly dependent on energy imports. Policy Approaches on Energy Cooperation

Policy analysts have made several recommendations to further hemispheric energy cooperation. Legislative Initiatives

Two legislative initiatives in the 110 th Congress would increase hemispheric cooperation on energy.
Western Hemisphere countries supply the United States with 50% of its imported crude oil. Three countries in the hemisphere—Canada, Mexico, and Venezuela—account for the lion's share. Other significant oil producers in the region include Ecuador, Colombia, Brazil, Trinidad and Tobago, and Argentina.
In terms of proven oil reserves, the Western Hemisphere has about 24% of reserves worldwide. After Canada, Venezuela has the second largest amount of proven oil reserves in the hemisphere, almost 87 billion barrels, but this does not include as much as 270 billion barrels of extra-heavy and bitumen deposits from the Orinoco belt. If these deposits became recoverable, Venezuela's proven reserves would exceed those of Saudi Arabia. In terms of natural gas, the United States has the largest amount of proven reserves in the hemisphere, about 39%, followed by Venezuela, almost 31%. Canada, Trinidad and Tobago, and Bolivia also have sizeable reserves. Almost all of the gas imported by pipeline into the United States comes from Canada, while Trinidad and Tobago accounted for about 58% of U.S. liquified natural gas imports in 2007.
While oil and gas producers such as Venezuela, Mexico, Argentina, Bolivia, Colombia, Ecuador, and Trinidad and Tobago are net energy exporters, most other Latin American and Caribbean nations are net energy importers. Moreover, with the exception of Trinidad and Tobago, most Caribbean and Central American nations are highly dependent on energy imports.
High oil prices have spurred the rise of resource nationalism in several Latin American energy-producing countries, which has raised concerns about access to energy resources and political interference with the level of energy production and investment in the region. Such nationalism is often fueled by poverty, and appears to be strongest in countries where people believe that they are not benefitting from the exploitation of their countries' natural resources. Yet many analysts assert that such nationalism is a logical outcome of higher energy prices, and is similar to the actions by energy-producing countries around the world that want to capture more of the profit from their natural resources.
This report examines Latin America's current political environment and its apparent effect on energy production in the region. It also discusses efforts to help many Latin American and Caribbean countries dependent on energy imports, including Venezuela's preferential oil programs, the Mexico-led Meso-American Energy Integration Program, and U.S.-Brazilian cooperation on biofuels. The report also examines policy approaches that have been proposed for increased hemispheric energy cooperation, congressional interest in the topic of hemispheric energy security, and related legislative initiatives: S. 193 (Lugar), the Energy Diplomacy and Security Act of 2007, and S. 1007 (Lugar), the United States-Brazil Energy Cooperation Pact of 2007. This report will be updated to reflect legislative action.