Energy and Security in Border Regions

Alan Sweedler San Diego State University

SCERP

Tucson 2006

Some Basics

•  Secure and adequate energy resources are critical to the security and well being of every nation. Therefore:

•  Access to energy supplies is legitimately a question of national and international security.

•  Keep in mind: over 80% of the world’s energy is derived from carbon-based fuels. (oil, coal, gas)

Oil Reality •  U.S. Consumes 25% or world’s oil.

•  U.S. Imports 66% of its oil. By 2020, we will be importing close to 75%.

•  U.S. Spends $313 billion per year on imported oil. •  Two thirds of global reserves are in middle east. •  By 2030, china will import as much oil as U.S. •  U.S. spends approximately $75 billion per year to

maintain military presence in middle east (does NOT include Iraq war).

Security Issues Related to Energy •  Supply disruption.

– Political events. – Sabotage. – Accidents.

•  Long term declining reserves. •  Nuclear proliferation – spread of nuclear

weapons.

U.S.-Mexico •  For U.S.-Mexico binational region;

–  Cross-border energy trading a reality and growing. –  Currently the energy sector unites business

interests on both sides of the border. –  But, is divisive for many environmental groups,

NGO’s and some public agencies.

•  As interdependence in energy trade increases, concerns of security of supply and reliability will grow.

•  If managed properly, energy trade can be a benefit to both sides of border.

•  But, unless proper structures and policies are put in place, energy will become a area of friction and tension.

Bad Policy - Good Policy

•  Bad: U.S. should become energy independent.

–  Not feasible and not needed. •  Good: reduce oil imports.

–  This means increasing efficiency in the transportation sector. A 20% increase in efficiency would reduce oil imports by 3 million barrels per day. Would end our oil imports from Saudi Arabia.