Minister Of Mines And Energy Says Modernization Of Brazilian Refineries Is A Priority For Self-Sufficiency

Since the beginning of the current government, it has been established as a commitment to modernize Brazilian refineries so that the country can become self-sufficient in the production of gasoline and diesel.

This is a necessary initiative for Brazil to stop being at the mercy of the OPEC cartel and to become more independent in the oil and gas sector. In this sense, Minister of Mines and Energy, Alexandre Silveira, argues that the modernization of refineries should be a more relevant social role for Petrobras.

Moreover, he states that the modernization of Brazilian refineries is important for the country to continue exporting crude oil with a higher added value.

Petrobras Has an Important Social Role in the Modernization of Refineries

Petrobras is a mixed economy company with publicly traded capital both on the São Paulo Stock Exchange and the New York Stock Exchange. In the current government, the governance of the company will be respected, but the modernization of refineries is seen as a more relevant social role for the state-owned company. The goal is to make Brazil self-sufficient in the production of gasoline and diesel, and the modernization of refineries is the way to achieve this.

According to the Minister of Mines and Energy, it is possible for the country to become self-sufficient in diesel production in the medium term. This is an important initiative for Brazil to reduce dependency on importers, especially in times of crisis.

Divestment Program, a Serious Mistake in the Temer-Bolsonaro Administration, According to Silveira

The divestment program launched during the Michel Temer government and carried forward in Jair Bolsonaro’s administration has been considered a serious mistake by the Minister of Mines and Energy. This is because, according to him, this initiative represents an attack on national sovereignty.

With the sale of Petrobras assets, Brazil becomes even more dependent on importers. This is concerning, especially at a time when the global economy is experiencing significant instability. Therefore, the modernization of refineries is an extremely important initiative for the country to become more independent in the oil and gas sector.

Brazil Cannot Be Held Hostage by the OPEC Cartel

The Minister of Mines and Energy argues that Brazil cannot be at the mercy of the OPEC cartel. Whenever the international price of oil drops below US$ 80, OPEC announces a production cut to force price increases. This is a problem for Brazil, which is a large importer of oil and its derivatives.

For Silveira, the modernization of refineries is a more relevant social role for Petrobras and for the country, as it makes Brazil more independent in this sector. And this initiative is necessary for Brazil to have more energy security and reduce the consequences of the instability of the international oil market.

Transparency of Airlines in Cost Composition

When asked about the high price of jet fuel, the Minister of Mines and Energy states that airlines need to be more transparent in the cost composition of passenger transport. It is necessary to know if fuel is really the only villain of this cost.

Furthermore, Silveira argues that the modernization of refineries is essential for reducing the fuel prices in Brazil. This is because the country still depends on diesel and gasoline imports, which raises fuel prices and harms the country’s economy. With modern and efficient refineries, Brazil can produce its own petroleum derivatives and become a major exporter of gasoline and diesel.