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New Decree Promises to Shake Up Oil Companies and Directly Impact Oil Production in Brazil

Written by Rafaela Fabris
Published on 28/09/2024 at 11:34
Updated on 30/09/2024 at 12:16
Novo decreto promete abalar as estruturas das petrolíferas e causar impacto direto na produção de petróleo no Brasil
Brasil mexe na produção de petróleo (Imagem: Representação)
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Experts Point Out Risks for Oil Production and Challenge ANP’s Ability to Drive Changes in the Gas Market.

It seems the government has decided to turn everything upside down in the gas and oil sector with a decree that, due to its controversial nature, is already causing headaches for market giants. The new measure, which aims to regulate how much gas oil companies can reinject into wells, may directly affect oil production. And, as if that weren’t enough, experts are raising serious doubts about ANP’s ability to manage the process. Are we about to witness a true earthquake in the energy market?

A new decree signed by President Luiz Inácio Lula da Silva, Decree 12.153, has brought to light a series of concerns in the oil and gas sector. The document gives the National Agency of Petroleum, Natural Gas and Biofuels (ANP) the power to regulate the amount of natural gas that can be reinjected into wells by oil companies. This change, according to the NeoFeed portal, is expected to directly impact oil production in Brazil, creating legal insecurity and uncertainties about ANP’s ability to manage the transition.

Despite Oil Companies Prioritizing Oil Production, New Decree Aims to Increase Natural Gas Supply

The government justifies the measure as part of an effort to increase the supply of natural gas and, thus, reduce its price in the domestic market. With 56% of the natural gas currently extracted being reinjected, above the global average of 25%, the idea is to direct part of this volume to the market. However, oil companies, which traditionally prioritize oil production as it is more profitable, are already showing concern over the new rules and their financial impacts.

“This Could Halt Platforms for Months…”

Sylvie D’Apote, Director of Natural Gas at the Brazilian Institute of Oil and Gas (IBP), highlights that the biggest concern is that the decree allows ANP to alter development plans for fields already in operation. “This could halt platforms for months, directly affecting oil production and generating enormous costs for companies,” warns D’Apote.

Jamille Moreira from Thymos Energia adds that the legal insecurity generated by the decree is a factor that needs to be discussed carefully. “Oil companies will need to negotiate every step with ANP, and this could drag on for months,” says Moreira. According to her, the decree will not bring immediate changes to the gas market, with effects being felt only in the medium to long term.

ANP’s Capacity Under Question

In addition to the legal uncertainties, another point raised by experts is ANP’s technical ability to manage the entire oil production process. Adrianno Lorezon, coordinator of the Gas Forum, emphasizes that ANP is already struggling to regulate basic aspects of the Gas Law and will now be responsible for an even greater intervention. “With a reduced technical team, it is hard to imagine how ANP will be able to handle everything,” criticizes Lorezon.

The decree also raises questions about the impacts on the production chain, according to NeoFeed. Sectors such as fertilizers, petrochemical, and ceramic, which are major consumers of gas, may feel the effects of the changes. For some experts like Betina Moura from Argus, ANP will need to accurately balance the reinjection of gas by oil companies so as not to compromise oil production, which is essential for maintaining reservoir pressure in the pre-salt layer.

Oil Production Is One of the Pillars of the National Economy

With so many uncertainties in the air, the oil and gas sector watches cautiously the next steps of ANP and the federal government. Oil production, one of the pillars of the national economy, may face a period of adjustments and uncertainties. In the meantime, oil companies are already preparing for long negotiations, seeking to mitigate the financial and operational impacts of the new rules. The scenario is still murky, but one thing is certain: the coming months will be crucial in defining the future of oil production in Brazil.

And now, will this government intervention actually help lower gas prices or end up further hindering oil production in Brazil?

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Ronaldo
Ronaldo
30/09/2024 14:19

Impressionante como ainda existem bestas polarizadas que não entendem nada de coisa nenhuma e ficam atacando um ou outro governo. Isso serve para ambos os lados da mesma moeda. Até uma medida que, se bem conduzida e que pode diminuir o preço em cascata de várias coisas, é atacada sem uma análise isenta. Ninguém nos comentários até agora parece ter conhecimento e capacidade para analisar e aqui me incluo. A matéria é pobre e não mostra os argumentos a favor. Vocês trabalham para quem afinal? Sejam isentos! Para isso serve a mídia.

Carlos Souza
Carlos Souza
30/09/2024 08:21

Quanto o portal recebe de dinheiro para tais publicações? Quais são suas intenções? Quer gerar pânico?

Agnaldo Malo
Agnaldo Malo
29/09/2024 11:21

Esse nine fingers é o pai dos pobres e ****, a conta esta ficando mais cara, eh muito amor esse pai dos pobres.

Rafaela Fabris

Fala sobre inovação, energia renováveis, petróleo e gás. Com mais de 1.200 artigos publicados no CPG, atualiza diariamente sobre oportunidades no mercado de trabalho brasileiro. Sugestão de pauta: rafafabris11@gmail.com

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