1. Coronavirus, Oil and Latin America: The Urgency of Economic Diversification and Energy Transition
- Author:
- Carlos Monge
- Publication Date:
- 08-2020
- Content Type:
- Policy Brief
- Institution:
- Natural Resource Governance Institute
- Abstract:
- Key messages: Companies are demanding temporary bailouts, requesting that governments subsidize them with breakeven prices over sale prices, and allow them to postpone tax and royalty payments and agreed investments. Such actions may be necessary to preserve jobs and ensure domestic energy supplies. Governments are considering lowering social and environmental standards, fast tracking procedures and providing long-term subsidies to support ongoing projects and to attract new investments. For an industry already facing its twilight, these actions are not justified. Governments must urgently move ahead with economic diversification and energy transitions to ensure the availability of jobs, energy and fiscal incomes that the oil industry currently provides.
- Topic:
- Energy Policy, Oil, Diversification, Renewable Energy, Coronavirus, and COVID-19
- Political Geography:
- Colombia, South America, Central America, Mexico, and Peru