Brazil energy

It’s going to be a nail-biting few days ahead for Petrobras’s investors, Brazil’s ethanol industry and anyone with a car in the Latin American country.

Next Friday at Petrobras’s board meeting, the government is set to decide on whether to increase fuel prices in the country and, more importantly, whether to keep prices in line with international levels in the future. Read more

Has the Brazilian government been reading the FT’s running coverage of Petrobras’s financial woes – including this must read analysis from last week?

It must have (joke) – because just days after Petrobras head Mary Grace Silva Foster said the state-controlled oil major has sufficient funds to operate and does not need a fuel price increase, the company hinted on Friday that it could be looking to do just that. Read more

gavelGoing, going, gone! After months of hype, excitement, protests, and lawsuits, Brazil finally auctioned off its biggest ever oil discovery on Monday – the Libra field.

‘Auction’, however, is perhaps a misleading term. There was only one bidder – a consortium made up of Brazil’s state-run Petrobras (40%), Anglo-Dutch Shell (20%), France’s Total (20%), and China’s CNPC (10%) and CNOOC (10%). Read more

By Claire Casey of Garten Rothkopf

The mass street protests that have shaken Brazil since early June promise to yield fundamental reforms to the political system. But they could also threaten a long-awaited revival of the country’s bio-fuel and energy sector.

The past five years have been frustrating for Brazil’s ethanol and oil and gas industries. Since 2009, the ethanol industry, unable to compete with artificially low gasoline prices, has seen its share of the light duty fuel market drop from 50 to 30 per cent. Read more

India Cairn Vedanta RescourcesBrazil’s oil industry has not been the source of much good news recently but this week might just go down as one of its best yet.

On Monday, the country’s state-run giant Petrobras managed to raise $11bn in the biggest emerging markets bond issue ever. Then on Tuesday the country pulled in a record R$2.8bn ($1.4bn) in its first auction of licences for oil exploration blocks in five years. Read more

As beyondbrics’ São Paulo team looks out from its office over a city darkened by Apocalypse-like walls of thunder clouds unleashing hail on the commuters below, the nation’s latest challenge seems bizarre to say the least.

A hot, apparently dry, summer is leading to speculation that the nation will have to resort to energy rationing for the first time since 2001. Scant rainfall is drying up the country’s hydropower plants, which provide the bulk of its energy, while increased use of air-conditioners to cope with the heat is sapping whatever output there is.

As a result, Brazil may have to increase usage of its fossil-fuel fired plants. Read more

Brazil’s government came out with the long-awaited announcement on Tuesday that it would auction another round of oil exploration rights next year.

Most importantly, there will be two auctions, energy minister Edison Lobao said. A first round of 174 blocks, many of which are expected to be in the Equatorial Margin, a potentially interesting new offshore area in the country’s north, near the mouth of the Amazon River. This will be offered under the country’s oil concession law that allows the successful bidder to operate the field. Read more