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US discusses possibility of easing sanctions on Venezuelan oil

Written by Paulo S. Nogueira
Published 18/10/2023 às 09:49
US discusses possibility of easing sanctions on Venezuelan oil
Nicolas Maduro during the announcement of the creation of Petro, Venezuela's virtual currency (Photo: Disclosure)

Brent futures contracts continue to remain stable above the US$90 mark. In today's edition, the President of the United States, Joe Biden, demonstrated his willingness to reduce sanctions to oil from Venezuela, as long as the country holds internationally observed elections, according to information from the Wall Street Journal. This measure aims to promote a possible political restructuring in Venezuela and improve relations between the two countries.

In Brazil, a plant was activated due to the environmental crisis in Amazon, however, this action could result in the second most expensive energy in the country. The Santo Antônio plant will return to operation, however, the production costs of this energy may be high, which may directly impact the energy tariff for Brazilian consumers.

Furthermore, the United States is evaluating the possibility of financing energy transition projects in Brazil. This initiative aims to promote the diversification of the country's energy matrix, reducing dependence on non-renewable sources, such as oil. On the other hand, China is also expanding its investments in the lithium triangle in South America, aiming to meet the growing demand for lithium-ion batteries.

In relation to Venezuela, the United States is in negotiations to reduce the sanctions imposed on the Venezuelan state-owned company PDVSA. This measure seeks guarantees regarding the conduct of presidential elections in the country, with the aim of promoting a more transparent and democratic electoral process. The expectation is that an agreement will be signed at a meeting scheduled to take place in Barbados.

Despite this possibility of an increase in the supply of Venezuelan oil, barrel prices did not undergo major movements. Brent futures contracts for December registered a drop of 1,36%, reaching US$89,65 per barrel. However, the price per barrel still remains above US$90, which indicates that the market remains supported.

In Brazil, the Termonorte II plant is expected to become the second most expensive energy source in the country. The cost of electrical energy generated by the Termonorte I and Termonorte II plants, located in Porto Velho, is high, which could result in an increase in energy tariffs for consumers. This scenario reinforces the importance of seeking sustainable and lower-cost alternatives in power generation.

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O oil price has been a topic of great concern in recent months, especially due to the sanctions imposed on Venezuela by the USA. These sanctions have directly affected the Venezuelan economy and consequently oil production in the country. This has led to a significant increase in the price of oil on the international market, which directly impacts Brazil, one of the main importers of Venezuelan oil.

Furthermore, the climate crisis has also been a cause for concern, especially when it comes to water availability. According to the World Meteorological Organization (WMO), more than 5 billion people could be without water by 2050 due to the atypical conditions of reservoirs around the world. This highlights the importance of seeking sustainable energy generation alternatives, such as hydroelectric energy.

In this context, the resumption of energy generation at the Santo Antônio hydroelectric plant, located on the Madeira River, is good news. After two weeks of shutdown due to low river flow, the plant started operating again, generating 210 MW with three turbines. This recovery is important to guarantee the region's energy supply and reduce dependence on other energy sources, such as oil.

However, it is essential to ensure transparency and good use of public resources in energy generation. The Public Prosecutor's Office at the Federal Audit Court (TCU) proposed that the Court monitor investments by Brazil and Paraguay with resources from the Itaipu Binational, one of the largest hydroelectric plants in the world. The proposal is to investigate possible irregularities in the allocation of these resources for actions not linked to energy generation, thus ensuring efficient and responsible management.

Energy generation is an extremely important topic for the economic and social development of a country. However, it is necessary to seek sustainable and renewable alternatives, such as hydroelectric energy, to reduce dependence on fossil fuels and minimize environmental impacts. Brazil has enormous potential in this regard, especially in the Amazon region, where there is a great availability of natural resources for the generation of clean energy.

The Amazon, in addition to being an important biome, also has great potential for energy generation. The region is home to the largest hydroelectric plant in the world, the Belo Monte Hydroelectric Plant, and also has enormous potential for generating solar and wind energy. The use of these renewable energy sources in the Amazon region could significantly contribute to reducing greenhouse gas emissions and preserving this important biome.

In short, energy generation is a topic of great relevance, especially when it comes to seeking sustainable and renewable alternatives. The resumption of energy generation at the Santo Antônio hydroelectric plant is good news, but it is essential to ensure transparency and the good use of public resources in this sector. Furthermore, it is important to explore the potential of the Amazon region for generating clean energy, thus contributing to the preservation of the environment and a more sustainable future.
Renewable energy resources are becoming increasingly important in the search for sustainable alternatives for energy generation. Luiz Augusto Horta, an expert on the subject, highlights that the Decarbonization Credits (CBIOs) market can be boosted by the use of the barter, a new possibility brought by the company Basf. In this model, Basf provides inputs to producers, who in turn produce biofuels and issue decarbonization credits, which are transferred back to Basf. This closed cycle allows the exchange of grains for CBIOs, making the process more efficient and sustainable.

Sustainable taxonomy is a concept that can bring positive impacts to the climate and society. Guilherme Barbosa Vinhas highlights energy poverty as an example of how taxonomy can help combat social problems related to access to energy. By defining clear criteria for classifying sustainable projects and investments, the taxonomy can direct resources to areas that truly promote the energy transition and benefit society as a whole.

The United States has shown interest in financing energy transition projects in Brazil. Jake Levine, Chief Climate Officer (CCO) of the International Development Finance Corporation, says that the US government sees opportunities to develop supply chains in the country. This means that Brazil can receive investments for projects that promote the adoption of renewable energy and reduce dependence on unsustainable sources.

China is also expanding its investments in South America, specifically in the lithium triangle. Recently, Chile disclosed an agreement that grants preferential prices to Tsingshan Holding Group for the supply of lithium. This partnership is part of a global dispute between China and the United States for control of strategic resources, such as lithium, which is essential for the production of electric vehicle batteries.

On the national scene, the Federal Public Ministry has played an important role in monitoring and defending the environment. The body works to ensure compliance with environmental laws and combat illegal practices that harm the Amazon and other Brazilian biomes. Furthermore, the Federal Audit Court (TCU) has also been involved in supervising energy generation projects, ensuring the correct application of public resources and avoiding possible irregularities.

The crisis in Venezuela has impacted the oil market, with sanctions imposed by the United States and other countries. This has led to volatility in oil prices, affecting the global economy and the search for more sustainable energy alternatives. In this context, it is essential that countries invest in renewable sources and reduce their dependence on oil, aiming for energy security and environmental preservation.

In summary, energy generation from renewable resources is a global trend, driven by the search for sustainable alternatives and the need to reduce greenhouse gas emissions. The use of the barter in the operation of CBIOs can boost this market, making it more efficient and inclusive. Furthermore, the sustainable taxonomy can direct investments to projects that truly promote the energy transition. The United States and China are attentive to these opportunities, financing projects and competing for strategic resources. In Brazil, the Federal Public Ministry and the TCU play an important role in monitoring and defending the environment. Finally, the crisis in Venezuela and international sanctions have impacted the oil market, reinforcing the importance of investing in renewable sources and reducing dependence on fossil fuels.

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Paulo S. Nogueira

Creator and disseminator of content in the areas of oil, gas, offshore, renewables, mining, economics, technology, construction and other energy sectors.

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