Mercosur governments asked to prioritize energy and electricity integration

This Chamber of Senators release was published using machine translation.

A draft declaration was presented by parliamentarians Ricardo Canese, Edith Benítez, Blanca Lila Mignarro, Nery Olmedo and Enzo Cardozo before Parlasur. Through it, the Mercosur governments are urged, via the Common Market Council, to give priority "to analyzing the consequences of the energy crisis that is being experienced and to plan and implement energy and electricity integration projects accordingly."

They allege that the proposal is based on making our energy systems more "efficient, progressively and massively electrifying our transportation systems, both cargo and passenger."

In the foundation, it is stated that the challenges of the energy crisis and the high prices of hydrocarbons must be better faced, considering the war between Russia and Ukraine, which implies a substantial change in the world energy market, which is also reflected in our region.

"It is urgent to take measures to mitigate present and future uncertainties and the consequent high supply costs", it is emphasized in the document presented and they state that, before the aforementioned war, the world energy market was already having serious difficulties in supplying the demand at low costs. reduced, with costs that have been rising steadily.

"What is the reason for the substantial increase in the price of oil and natural gas, and even mineral coal, which together supply ¾ of the world's energy demand?", asks among those alleged in favor of the measure. driven. In this regard, it is said that the major structural cause is that the economy began to reactivate in 2021, on the one hand, and there is also a much greater concern for the use of energy in a sustainable way.

It is added that the laudable objective indicated, however, according to experts, has had the effect of reducing investments in the exploitation of fossil energies, which has translated into a lower supply, which is further reduced by political conflicts, that were already supported before the war in Ukraine. The latter, it is indicated, has raised the "nervousness of the market to much higher levels" and cites that current prices (between one hundred and two hundred dollars per barrel of oil), which are much higher than those of 2021.

“In addition to the generalized lack of investment in the exploration and exploitation of fossil energies, there are well-founded criticisms of the exploitation of bituminous shale in the United States of America, due to the polluting method of fracking, which has significantly limited production and prospects. of hydrocarbon production in one of the world's largest producers”, continues the material, which will be included in the next ordinary session of Parlasur, on April 4.

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