Introduction

Abstract

The “energy crisis” has often been advanced as the most important explanation of many Latin American nations' economic and political behavior during the 1960s and 1970s. Low oil prices led Venezuela to join in founding OPEC in 1960 and to take an active role in reaching its decisions. The fear of an oil embargo in 1973–74 forced Brazil to shift to a pro-Arab foreign policy. The increased oil prices of the past decade permitted, but did not ensure, rapid growth of Latin American oil producers, and are associated with massive increases in foreign borrowing and the search for new energy sources by both oil consuming and producing nations. The expenditure of increasing shares of national income on energy production and distribution influences life styles by leaving fewer resources for other activities, and will continue to do so at least until substitutes for current energy sources become available at attractive prices.