Brazil toward a more open energy market

Brazil toward a more open energy market

Editorial Staff
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The country will start allowing other companies to explore and produce oil and gas, bringing an end to the monopoly of Petrobras

Brazil’s new administration, headed by Michel Temer, wants to make the country’s energy market more flexible and open. Fernando Coelho Filho, Brazil’s minister of energy and mining, expressed his support for the plan while speaking before the country’s parliament in favor of a proposed law to authorize exploration and production in the pre-salt fields of the Santos Basin, called Pré-sal. The resource represents an enormous wealth, but one which ''is worthless if the Brazilian people can’t access it'', stated Filho. The law would enable other companies to develop the country’s rich underground resources while potentially representing the coup de grâce for Petrobras, which will take years to regain its pre-crisis position and the strong reputation it had enjoyed until just a few years ago. In the meantime, Brazil continues to celebrate the Olympic Games and results achieved in the country’s move toward renewable energies, having moved it up seven places in the world ranking of wind energy producers to reach 8th in 2015. Filho made the official announcement yesterday.