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."

Tags:

Ads

You May Also Like

A Brazil the History Books Won’t Show

Once in a while it’s good to dive back into the past, which never ...

New Oil Discovery in Brazil May Change Way Petrobras Does Business

The international director of the Brazilian state-controlled oil multinational Petrobras, Jorge Zelada, would not ...

North Korea’s Foreign Minister in Brazil for Talks

The Foreign Affairs minister of North Korea, Pak Ui-Chun, is in Brazil where he ...

Obama’s Debt to His Brazilian Readers

Barack Obama owes us another journey to Brazil. Not as president, but as a ...

New Brazilian Coconut Water Has US Debut in California

Tropical Beverage, a producer and distributor of water-based products, announced that it will soon ...

Oil Prices Scare Brazilian Investors

Brazilian and Latin American markets declined alongside considerable weakness in U.S. markets. Crude oil ...

Brazil Is Starting an Intenational Revolution in Men’s Wear

Brazilian men’s fashion is starting to find its space in stores around the world. ...

More Brazilian Soldiers Make Their Way to Haiti

The last group of Brazilian soldiers slated to join the 5th contingent of the ...

Brazilian market sells organic fruit

Brazil Is World’s Second Largest Producer of Organics and 70% Is Exported

Sales of organic products at supermarkets in Brazil should surpass 1.25 billion Brazilian reais ...

Brazil Opens World Social Forum’s 10th Edition. All Protestors Are Welcome

Ten years after its creation the World Social Forum, a leftist alternative to the ...