Brazil may join OPEC to export crude oil

2022-10-15
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Brazil may join OPEC to start exporting crude oil

Brazilian Minister of mining and energy Edison lobang said in Brasilia on the 8th that at the invitation of OPEC, the new Brazilian government led by dilma Rousseff may join the organization

lobang said that Brazil has not rejected the invitation of OPEC and has been studying it. The current Brazilian government tends to accept this invitation. Joining the organization can enhance Brazil's importance on the international stage

experts estimate that the oil reserves of the oil field stones discovered in the deep-water waters of the southeast coast of Brazil since 2007 in order to more accurately verify the pendulum impact testing machine are at least 70billion barrels, which is expected to further increase with the continuation of exploration

these crude oil deposits, which have been constantly discovered in recent years, have made OPEC frequently "show kindness" to Brazil, but Brazil declined with "other priorities". Earlier, in an interview with the media, lobang said the reason why it has been hesitant to join the OPEC plan. Brazil plans to refine the domestic crude oil into gasoline and other petroleum products for export, so as to earn more foreign exchange, rather than directly exporting crude oil. Doing so will enable Brazil to make more profits and create more jobs at home. The structural diversity of Brazil at that time meant that there would be new use of materials. President Lula also expressed the same intention, hoping to export oil derivatives

Brazil's oil production has grown very rapidly. From 1980, it can only produce 17% of the required oil, to 2006, it has achieved oil self-sufficiency, which is a force that cannot be underestimated in the future international energy landscape

Xia Yishan, a researcher at the China Institute of international studies who specializes in energy strategy research, said that it is possible for Brazil to join OPEC. With the discovery of a large number of oil reserves, Brazil has become an oil producer and exporter with great potential. Joining OPEC is conducive to coordinating its oil policies with OPEC member states, reducing mutual contradictions and competition, safeguarding common interests, and obtaining stable oil revenue by unifying oil export volume and production quotas

Xia Yishan believes that it is one of the main building structure types. From cautious response to positive attitude, it shows that the Brazilian government is aware of the common interest relationship between itself and OPEC member states - increasing petrodollars, especially after it becomes an oil exporter. Although a farsighted oil exporting country advocates that the oil price fluctuates within a reasonable range, rather than the uncontrolled sharp rise of oil prices, so as not to finally interfere with the operation of the whole world economy, affect oil consumption demand, and stimulate the formation of alternative energy

in addition, Xia Yishan also said that the price of oil derivatives is based on the price of crude oil, so the stable increase of crude oil price is also conducive to creating more profits for Brazil's oil derivatives exports to other countries

what will happen to the international energy pattern if Brazil joins OPEC? Xia Yishan said that as the main supplier of OPEC to the international crude oil market so far, the joining of Brazil will undoubtedly increase its share of oil exports and strengthen its position in the international community. However, due to the small proportion of Brazilian oil in the world, its impact on the energy pattern of the whole world is limited. The tight situation of energy supply will not change in a short time, which is not enough to alleviate the tight situation of global oil supply

Xia Yishan pointed out that the world energy pattern is developing from the traditional polarization, that is, the power confrontation between the organization representing oil exporting countries - OPEC and the International Energy Agency (IEA), the economic joint organization between the governments of oil consuming countries, to a multipolar pattern, and a third or even multiple forces are emerging. The forces Nouvelles include countries that have not joined OPEC but have continuously strengthened their oil exploration and development capabilities, such as Russia; And China, India and other newly industrialized countries with huge oil consumption capacity

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