Though drops in oil prices stand to impact Saudi Arabia’s economic stability, the government has turned to drawing down its foreign reserves and issuing bonds to alleviate budgetary pressures and avoid drastic domestic spending cuts. Fellow for the Middle East Kristian Coates Ulrichsen writes in the Baker Institute Blog: http://bit.ly/1fKLWG9.

Texas loses between five to six million acre-feet of water per year to evaporation from surface water supply reservoirs. Aquifer storage and recovery (ASR), whereby water supplies are stored underground, may provide a useful strategy for managing and protecting water supplies.

Brazilian President Dilma Rousseff is starting her second term in office facing economic and political problems that feed into each other. These problems can be attributed to a large extent to mistakes her administration made during her first term. Rousseff’s macroeconomic policy proved to be inconsistent, and the choices she made in some key economic sectors, especially energy, were demonstrably disastrous. Rousseff now faces the enormous challenge of reconciling the leftwing populism that led her to victory with the inescapable need to regain the trust of the most dynamic sectors of Brazilian society, including the private sector.

After more than half a century of a highly restrictive policy toward Cuba that ranged from an economic embargo to prohibiting most travel by U.S. citizens to the island, President Obama announced on Dec. 17, 2014, that Washington and Havana hope to restore diplomatic relations in the near future. While President Obama's new Cuba policy falls short of lifting the embargo, which can only be done through congressional action, it nonetheless represents a historic shift in U.S. relations and leadership in Latin America.

Speaking from the historic steps of Old North on the Georgetown University campus on June 25, 2013, President Obama unveiled a detailed plan to address the causes and impacts of climate change. In his words, the president promised, “I’m directing the Environmental Protection Agency to put an end to the limitless dumping of carbon pollution from our power plants, and complete new pollution standards for both new and existing power plants.” Not quite a year later on June 6, 2014, Gina McCarthy, administrator of the Environmental Protection Agency, responded by proposing “state-specific rate-based goals for carbon dioxide emissions from the power sector, as well as guidelines for states to follow in developing plans to achieve the state-specific goals.”

Energy regulation under Mexico's energy-sector reforms are of great interest to investors, since autonomous regulators—protected from political pressures and able to make and sustain technical decisions—can guarantee greater legal consistency than government authorities exposed to political pressures. The difficulty was finding an alternative model that ensured the institutional strengthening of the agencies without relinquishing too much control of the executive branch.

Talk of a “pivot to Asia” that supposedly would mark President Obama’s second term is “misplaced and even simplistic,” writes fellow Kristian Coates Ulrichsen. In a globalized world, “key U.S. relationships with strategic and commercial partners … cannot be addressed in isolation from one another. The convergence of U.S. ties and Asian ties with the Middle East is a case in point highlights how regions and issues are interconnected as never before.”

To access the full paper, download the PDF here.

Executive Summary

In 2009, Abu Dhabi launched a drive into renewable…

Countries around the Persian Gulf are falling behind with regard to renewables, both for technical and for political reasons. And they need to diversify — just like the rest of us — if they are going to keep local consumption from using up too much of the oil they would rather sell.