Here is my latest column published in IBA Global Insight:
The current turmoil in Ukraine continues to dominate the headlines in Europe, but the ripple effect has been felt much further afield. ‘The crisis in Ukraine has once again shown a close correlation between extreme political volatility and energy markets,’ says Pablo Alliani, Chair of the IBA Section on Energy, Environment, Natural Resources and Infrastructure Law and senior partner at Alliani & Bruzzon Abogados in Argentina. ‘Globalisation has interconnected the energy markets in such a manner that a crisis of this sort in any part of the globe will affect the whole world, regardless of any distance.’
For Alliani, there is cause for concern much closer to home: in Venezuela, where civil unrest and political demonstrations continue. ‘Venezuela’s role as one of the region’s leading oil producers means that a crisis in the country would have regional and international ramifications if the oil flow were disrupted,’ he says.
Although protests have been concentrated in the country’s main cities, far away from key production centres such as the Orinoco Belt, Lake Maracaibo and Monagas, the disorder threatens to destabilise the global energy market further. ‘In this respect,’ Alliani adds, ‘even if the oil industry remained insulated, prolonged unrest could severely affect Venezuela’s economy, with major consequences for its key trading partners.’
Published on 06-06-14. Read on here