Brazil’s Management of Oil and Gas: State Centrism Versus Liberalism
Brazil is a large energy producer, but is yet to develop a clear and predictable national oil and gas strategy that matches the extent of its reserves and the complexity of operations. This has taken place for a number of reasons, including heavy involvement of the state, shifting political and regulatory powers, and changing exploration and production policy, particularly concerning Brazil’s National Oil Company (NOC), Petrobras. Brazil’s ability to control the NOC has been heavily influenced by numerous presidential administrations which have aligned oil and gas legislation with the politics of the respective government in power. Depending on the type of government, a mix of governance structures present in Brazil’s oil and gas sector has favoured policies ranging from state centrism to market liberalism. As shall be concluded, left-wing governments tend to be more state centric in O&G exploration and to give Petrobras more prominence. On the other hand, neoliberal governments tend to be more market friendly and to lessen Petrobras’ protagonism in such activities. Notwithstanding the differing approaches, the country’s NOC remains a key element of Brazil’s oil and gas policies, irrespective of the degree of state control over it, which has a profound impact on the management side of oil and gas.
- Amaral, L., and L. Lis 2016. G1 Economia: Temer sanciona lei que desobriga Petrobras de participar do pré-sal, November 29 [Online]. Available from http://g1.globo.com/economia/noticia/2016/11/temer-sanciona-lei-que-desobriga-petrobras-de-participar-do-pre-sal.html. Accessed 25 Jan 2017.
- ANP [National Agency of Petroleum, Natural Gas and Biofuels]. 2016. Anuário Estatístico Brasileiro do Petróleo, Gás Natural e Biocombustíveis [Online]. Available from http://www.anp.gov.br/wwwanp/images/publicacoes/Anuario_Estatistico_ANP_2016.pdf. Accessed 5 Jan 2017.
- Chamber of Deputies. 2008. Saiba como evoluiu a legislação brasileira sobre petróleo [Online]. Available from http://www2.camara.leg.br/camaranoticias/noticias/126538.html www2.camara.leg.br/camaranoticias/noticias/126538.htmla. Accessed 2 Dec 2016.
- ———. 2016. PL 4567/2016 [Online]. Available from www.camara.gov.br/proposicoesWeb/fichadetramitacao?idProposicao=2078295. Accessed 3 Jan 2017.
- EY. 2014. Desenvolvimento do gás natural no Brasil [Online]. Available from www.ey.com/Publication/vwLUAssets/EY_Desenvolvimento_do_gas_natural_no_Brasil/$FILE/Estudo_Gas_Web.pdf. Accessed 16 Jan 2017.
- Hults, D.R. 2012. Hybrid Governance: State Management of National Oil Companies. In Oil and Governance: State-Owned Enterprises and the World Energy Supply, ed. D.G. Victor, D.R. Hults, and M.C. Thurber. Cambridge: Cambridge University Press.Google Scholar
- Lira Nascimento, F.A. 2016. Drilling Southwards: Presenting Brazil’s Hydrocarbon Scenario in Light of Its Growing E&P Operations [Online]. EUCERS/King’s College London/Konrad Adenauer Foundation. Available from https://www.kcl.ac.uk/sspp/departments/warstudies/research/groups/eucers/pubs/strategy-paper-8.pdf. Accessed 18 Dec 2016.
- MME [Ministry of Mines and Energy]. 2016. Balanço Energético Nacional [Online]. Available from https://ben.epe.gov.br/downloads/Relatorio_Final_BEN_2016.pdf. Accessed 25 May 2016.
- Presidency of the Republic. 1953. Lei n° 2.004, de 3 de outubro de 1953 [Online]. Available from www.planalto.gov.br/ccivil_03/leis/L2004.htm. Accessed 5 Sep 2016.
- ———. 2010. Lei n° 12.351, de 22 de dezembro de 2010 [Online]. Available from www.planalto.gov.br/ccivil_03/_Ato2007-2010/2010/Lei/L12351.htm. Accessed 30 Nov 2016.
- Segal, David. 2015. Petrobras Oil Scandal Leaves Brazilians Lamenting a Lost Dream. The New York Times. Available from http://www.nytimes.com/2015/08/09/business/international/effects-of-petrobras-scandal-leave-brazilians-lamenting-a-lost-dream.html?_r=0. Accessed 31 Jan 2016.