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Brazil’s Challenge: Avoiding Oil Curse, Says Minister

An offshore oilfield in Brazil According to a close aide to Brazilian president, Luiz Inácio Lula da Silva, Brazil is faced with two challenges concerning the pre-salt layer: keeping investment in drilling and exploration for oil in that region, and preventing the country from being affected by the so-called "curse of oil," i.e., the de-industrialization of the economy and economic dependency on oil reserves.

The statement was made this Wednesday, December 3, by the Chief of Staff of the Presidential Administration, Dilma Rousseff, during a joint public hearing at the House of Representatives, in Brazilian
capital Brasí­lia.

The minister also said that it is not true that the pre-salt is only going to be explored in the future. "The pre-salt is supposed to be explored right now, and it is a key tool for positioning Brazil within the resumption of economic growth," she said.

Roussef also listed measures that the country should adopt so that exploration in the pre-salt will generate revenues and, at the same time, economic development and employment.

According to her, Brazil must launch tenders in order to hire probes and supply boats, sign long-term contracts for providing services and offering support to the expansion of capacity of the naval industry.

According to the Chief of Staff, due to the high volume and quality of oil in the pre-salt layer, Brazil will go from oil importer country to exporter country.

She was invited to attend the joint public hearing of the House of Representatives that discusses the impact of the global economic crisis on Brazil and the government actions for fighting it.

Despite the world economic crisis, Brazil is going to keep all the investment projects planned for 2009 and 2010, said Rousseff.

The minister assured that Brazil is in better economic shape today than it was last year. She also informed that investments from the PAC (Growth Acceleration Program) are going to be increased by 26% up to 2010, going from 474.8 billion Brazilian reais (US$ 198.2) to 636.2 billion reais (265.6 billion).

"We will go on with investments in pre-salt and the social programs," stressed Dilma, emphasizing that the Growth Acceleration Program is one of the most important measures to efficiently tackle the crisis situation.

Dilma also said that prices of gas and other oil byproducts will not go down despite the slump in prices for a barrel of oil. And she explained: "The same way we didn't pass the price increase to the market when the barrel of oil hit US$ 147, we won't do it now."

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  • Show Comments (8)

  • jon

    Observer,

    Finding oil at those depths is like finding a useful degree at the bottom of a deterent pack 😉

  • João da Silva

    [quote]Much ado about nothing as the OIL must flow first!!!!..maybe a great deal of salt will be the only thing Petrobras will bring to the surface..hey a salt cartel[/quote]

    As we like to say, you are a “Velho Sabio”, Herr.Observer 😀

  • observer

    Much ado about nothing as the OIL must flow first!!!!..maybe a great deal of salt will be the only thing Petrobras will bring to the surface..hey a salt cartel 🙂 🙂

  • João da Silva

    [quote]the de-industrialization of the economy and economic dependency on oil reserves.[/quote]

    The so called de-industrialization of the economy started in much before the current government came into power. One simple question to our fellow Brazilian commentators: In 1998 the Telecoms industries were privatized. Have you seen any great innovations in this sector, since then, except more than 200% increase in the monthly subscription rates? Or any innovations in the Pay phones?

    BTW, when are we going to avoid “Soy Bean Curse”? 🙁

  • ch.c.

    To Sage !
    1) I know how idiot I am, but I believe choclate should be CHOCOLATE ! I wonder now who of the two is the MOST IDIOT !

    2) As long as Swiss Chocolates or Swiss Cheeses command a high premium over SAGE – Soyabeans….Anal…Genital….Ethanol,
    feel free to chose by yourself if ch.c. means Cheesy Choclate or Choclate Cheese !!!

    And with a big smile let me add that even the Swiss Cuckoo Clocks are LOVED by Asians and different nationalities. They queue with full buses to buy them. Somewhat funny from Asians…since these clocks are made in…ASIA !!!!
    Every tourist not even with lot of money, including many asians funnily, are also queuing to buy HERE watches MADE IN CHINA…. TAIWAN….. OR JAPAN….. !!!!!
    SURE….those with more money…are taken elsewhere…..where they can buy watches from anything between US$ 300.- to US$
    300’000.-…. and more !

    Dont worry for my country. We are only 1/25th the Brazilian population but import and export AS MUCH AS THE WHOLE BRAZIL….if you did not know !
    We should do something right….that Brazilians dont ! Especially knowing our land is small, mountainous, overall bad climate, not even with sea access, and nothing much underground !!!!

    Better yet
    – Brazil has actually its HISTORICAL RECORD CURRENT ACCOUNT….DEFICIT ! Even in the rosy exceptional years, the c/a surplus was barely not even 1 % of your GDP.
    While my country….year in….year out….has a Current Account SURPLUS of around 15 % of its GDP !
    – My country has 100 % of paved roads, Brazil 5 % !!!!! Brazil paved roads are lower than most THIRD WORLD COUNTRIES !!!!
    – Despite having no sea access and overall bad climate, my country has more foreign tourism revenues than Brazil with so much sun and 7000 kms of dirty beaches !

    Yesssssss…we should do not one but many many many many things so much better than idiots like SAGE are doing !
    Stats are here…for proofs !

    Feel free to swim in your oceans of ethanol, muds, corruptions, crimes, poverty just to name a few !

  • ch.c.

    the de-industrialization of the economy and economic dependency on oil reserves.
    1) Economic dependency on oil reserves
    but…but…but—–IS BRAZIL NOT ALREADY SELF SUFFICIENT IN OIL ??????????
    2) de-industrialization of the economy
    but…but…but….are the EU, USA, Japan, South Korea, China…..ALREADY DE-INDUSTRIALIZED ??????

    Cheaters always cheat, liars always lie, hiders always hide !
    Best of all : cheaters, liars and hiders are time and again THE LOSERS ! How could it be different !
    And idiots remain idiots…for life ! That is in the nature of losers…by definition !

  • sage

    what does ch.c. mean
    ch.c. = cheesy choclate

    or

    ch.c. = choclate cheese

    now which 1 could it be. hey ch.c. can you help us on this…

  • Parabems

    Parabems Lula
    E desta forma que o Brazil vai para frent, ecarando os poblemas e resolvend eles de uma forma segura !

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