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The Formation of the Know-How (1938–1961)

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The Oil of Brazil

Abstract

In 1937, in Argentina, the internal consumption has already been achieved due to the activities of the state Company Yacimientos Petroliferos Fiscais; in Uruguay the refinery Teja was opened; in Mexico, the famous oil crisis with the United States took place, and in Bolivia, 1 year before, a state company was created to expropriate the Standard Oil Company from the territory (Martins 1976: 288).

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Notes

  1. 1.

    Brazilian Military and “Sertanista”. He graduated in Engineering and has a bachelor's degree in Mathematics and Physical Sciences. He presided the Military Club between July 1936 and January 1937, when he got involved in the debate about the existence or not of petroleum in the Brazilian subsoil. He was president of the CNP from 1938 to 1943. He became a proponent of the state oil monopoly and joined the Petroleum Campaign. Horta Barbosa always participated in the fight of the nationalist sectors that allowed the creation, in 1953, of Petrobras.

  2. 2.

    Brazilian military and 16th President of Brazil. He actively participated in the establishment of the New State (Estado novo). He won the elections for the presidency of the republic in 1945, assuming the government on January 31, 1946, leaving the government on January 31, 1951.

  3. 3.

    In order to assume the position of president of the CNP, it was necessary: (a) to be a born Brazilian, of well-known competence and of an unblemished reputation, besides being over 30 years old; (b) be in the enjoyment of their civil and political rights; (c) have not, at the time of designation, had in the preceding 5 years direct or indirect interests in private companies engaged in or engaged in the research, mining, industrialization or trade of petroleum and its by-products (Brasil 1938).

  4. 4.

    Information from the Câmara dos Deputados, 1939 apud Smith (1978: 53).

  5. 5.

    Oil-related issues that should be resolved by attracting foreign capital.

  6. 6.

    Juarez Távora, political and military, was known as a entreguista in relation to oil exploration in Brazil. He was in favor of the delivery of natural resources for the exploration of foreign companies and institutions, opposing the nationalist issues of the time. He was the main leader of those who opposed to the creation of Petrobras.

  7. 7.

    Arville Irving Levorsen (1864–1965) was an American geologist.

  8. 8.

    “The preference is between people who have the right capacity that the art. 153, 1st part (Brazilian or society, Brazilian legal entity, organized in Brazil). A company organized in Brazil but linked to foreign law (e.g. are legal entities of foreign law, or are subsidiaries or branches of foreign companies) cannot have mine or explore it, because the ratio legis of art. 152, part 1, of the 1946 Constitution was to remove all possible intervention from external action. The capital may be foreign; the society must be organized in Brazil and, therefore, only governed by Brazilian law. […]. The actions of mining companies, subsoil wealth, and water supplies could not be to the bearer. In a collective name, limited partnership, none of the partners could be a foreigner, nor a society composed of foreigners, although Brazilian. Society, still Brazilian, so that it could be shareholder of some of these companies, had to be composed by Brazilians and only by Brazilians. no partner’s right was alienable to foreigners” (Miranda 1960: 524–525).

  9. 9.

    In 1949, was renamed to Study Center and Petroleum and National Economy Defense (CEPDEN).

  10. 10.

    “Although existing refineries were allowed to remain in the hands of private companies, and the distribution of petroleum products was left to the private sector” (Skidmore 2010: 132).

  11. 11.

    “Such monopolization could only result from invocation of art. 146 [of the Federal Constitution of 1946], which says: ‘The Union may, by special law, intervene in the economic domain and monopolize a given industry or activity. The intervention will be based on public interest and by limiting the fundamental rights guaranteed in this Constitution’. There may be monopolization by the Union of the ownership of the land before any authorization. There may be monopolization, by the Union, of land ownership, after and independent of the right of exploration. There may be monopolization, by the Union, of both rights or only the right of exploration, to be exercised or already with the industries installed, or installed and in progress. Law No. 2,004, dated 3 October, 1953, enumerated the attributions of the National Petroleum Council and created Petrobrás. Such a law could only be made with invocation, explicit or implicit, of art. 146 of the Constitution of 1946, since, in art. 1, established: ‘They constitute a monopoly of the Union: I. The research and development of oil deposits and other fluid hydrocarbons and rare gases, existing in the national territory. II. The refining of the national or foreign oil.’ […] law no. 2,004 created the monopoly (article 1) and could, before the Constitution of 1946, create it” (Miranda 1960: 523).

  12. 12.

    Brazilian Military and Politician. He was the first President of Petrobras (from 2 April 1954 to 2 September 1954).

  13. 13.

    Mining and Civil Engineer. He was the tenth President of Petrobras (from 30 June 1966 to 27 March 1967).

  14. 14.

    Mining and Civil Engineer.

  15. 15.

    In order to understand the importance that we give here to the post of chief superintendent of a company, it is important to analyze the Brazilian social structure of the late fifties. For example, in the professional classification of the residents of the city of Sao Paulo, the positions of superintendent director, farmer, manager, lawyer, physician, priest and journalist are in the top rank of society, resulting from the progress of the processes of secularization and of commercialization of Brazilian society at the time. Mello, João Manuel Cardoso de Novais, Fernando Antonio. Late capitalism and modern sociability (Mello 1998).

  16. 16.

    Graduated in the National Law School. He was Minister of Planning in the Military Dictatorship. He held the position of President of Petrobras from 19 March 1985 to 15 May 1986.

  17. 17.

    For a long time, “researches in the area of Geology and Paleontology were restricted to field observations and point samples of sediments in the search for occasional fossiliferous findings. With the rapid expansion of exploratory research and the increasing volume of samples from drilled wells, there was a requirement for precise studies of the fragmented sedimentary material, aiming to describe the lithological characteristics and other characteristic elements. The microfossils found in the perforated sediments have been shown to be important as indicators of the sediment deposition environment and for its dating, reducing costs and optimizing oil exploration. From this recognition, Micropaleontology proved to be an important tool in the exploration of petroleum” (Memórias da… 2003: p. 8).

  18. 18.

    Graduated from the Sorbonne in Sciences and the French Institute of Petroleum in Geology. Son and grandson of geologists, it is worth mentioning that the Treaty of Mineralogy written by his grandfather is a classic work in the field of geology.

  19. 19.

    According to Azevedo and Terra (2008: 381), the report is composed of three letters and “in popular parlance, it became known as the ‘Link Report’”. They are followed by a fourth document containing the proposed exploratory budget for 1961.

  20. 20.

    Gabriel de Resende Passos (1901–1962) born in Itapecerica (Minas Gerais State). In 1924, he had a bachelor degree in legal and social sciences from the Belo Horizonte Law School. He acted as a lawyer, journalist and politician, having been elected a federal deputy. He also served as General Attorney of the Republic (1936) and Minister of Mines and Energy (1961).

  21. 21.

    A few months earlier, Petrpbras attempedattempted to renew Link’s contract for another two years, but he opted to close his deal with the company because of the results described and growing personal attacks.

  22. 22.

    The company was founded in 1953 by the Italian government with the aim of promoting and developing a national energy strategy.

  23. 23.

    Graphs 3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, and 3.13 were elaborated by the author based on data analyzed and compiled from the report entitled “Regional Organization and Situation of Technicians in the Exploration Department”, signed by Frederico Waldemar Waldemar Lange in 1961.

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Peyerl, D. (2019). The Formation of the Know-How (1938–1961). In: The Oil of Brazil . Historical Geography and Geosciences. Springer, Cham. https://doi.org/10.1007/978-3-030-13884-4_3

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