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The Divergences Between The Two Candidates Go Beyond Petrobras, There Are Other Strategic Sectors In The Energy Field That Jair Bolsonaro And Fernando Haddad Have Projects
Jair Bolsonaro and Fernando Haddad will decide in the second round who will be the next president of Brazil, and when we think about projects for the energy sector and employability, the first subject that comes to mind is the issue of Petrobras, especially regarding the controversial subject of privatization. Few know, but both candidates have many other projects, especially for the oil and renewable energy sectors. Despite Having Different Profiles (Check Here What They Are), EPBR has made a comparison of their proposals in the table below. We recommend reading the following report on Desktop, as the table is not responsive, or simply turn your Smartphone horizontally to see all elements of the text.
See Below The Comparative Table Of Programs For The Energy Sector
| Proposal | Jair Bolsonaro | Fernando Haddad |
| Petrobras | We must promote competition in the oil and gas sector, benefiting consumers. Therefore, Petrobras should sell a substantial portion of its refining, retail, transportation, and other activities where it has market power. |
The Haddad government will restore Petrobras’ role as a strategic agent of Brazilian development, ensuring it operates as a vertically integrated oil company – engaging in exploration, production, transportation, refining, distribution, and resale of fuels – and as an integrated energy company, present in the oil sector and in biofuels, electricity, fertilizers, natural gas, and, above all, petrochemicals. Special attention will be given to expanding the refining capacity, particularly by eliminating the current idleness of Petrobras’ refineries, to ensure the supply of petroleum derivatives across the country. The ongoing sale of the company’s strategic assets will be halted, while the local content policy will be resumed and improved. |
| Petrobras Price Policy | The prices charged by Petrobras should follow international markets, but short-term fluctuations should be mitigated with appropriate hedging mechanisms. | The Petrobras fuel pricing policy will be reoriented. The Brazilian market is open to imports, but that doesn’t mean that oil extracted in Brazil, transported and refined here, at a much lower cost than the international price, should be sold to Brazilians according to the New Petrobras Price Policy of the Temer government, the PPI (International Price Parity), which is enormously more expensive than the national product. This change aims to ensure a stable and affordable price for fuels. |
| Local Content | The bureaucratic requirement for local content reduces productivity and efficiency, and has also generated corruption. Moreover, there was no positive impact on the national industry in the long term. Thus, it will be necessary to gradually remove local content requirements. Employment in the local industry will grow in activities where there are advantages comparative or competitiveness. Therefore, the Brazilian shipbuilding industry will be compelled to invest and achieve higher levels of productivity. |
Petrobras must be strengthened, the sharing regime in the Pre-salt area must be maintained, as well as local content policy. The industrial policy requires a strong infrastructure that integrates and articulates the regions of the country, as well as large-scale clean energy production, as the country has high potential for it. |
| Oil Auctions | No information | We will halt privatizations and the sale of public assets, essential to our project of a sovereign nation that drives development, and we will take immediate initiatives to recover the wealth of the pre-salt, the sharing system, and enhance the investment capacity of Petrobras and other state companies. |
| Petrobras Divestments | Petrobras should sell a substantial part of its refining, retail, transportation, and other activities where it has market power. |
The ongoing sale of the company’s strategic assets will be halted, while the local content policy will be resumed and improved. |
| Natural Gas | To increase the importance of Natural Gas in the sector, it is important to end Petrobras’ monopoly over the entire production chain of the fuel, through: Desverticalization and privatization of the natural gas sector. • Free access and sharing of gas transport pipelines. • Independence of natural gas distributors and transporters, which should not be tied to the interests of a single company. • Creation of a wholesale natural gas market. • Incentives for unconventional exploration, which may be practiced by small producers. |
Gas is a product that must not be lacking in families’ homes. The Haddad government will create the Fair Price Gas Program, which will ensure that the gas price is affordable for families so that everyone can cook and eat with dignity and security again. |
| Renewables | Although we believe that the new model will be beneficial for Brazil as a whole, we consider that the Northeast will be one of the most benefited regions. With sun, wind, and workforce, the Northeast can become the foundation of a new clean, renewable, and democratic energy matrix. Expanding not only energy production but also the entire production chain related to it: production, installation, and maintenance of photovoltaic panels; partnerships with local universities to develop new technologies; emergence or installation of other industries that are energy-intensive, etc. | The changes will aim to zero the GHG emissions of the Brazilian electric matrix by 2050. The goal will also be to install photovoltaic kits in 500 thousand residences per year. Micro and mini-renewable energy generation will be boosted by the sale of excess energy generated by residences, commerce, and industry. |
| Electric Sector | We will transform the electric sector, from the current state of widespread judicialization and low investor confidence, into one of the main drivers of growth and development in Brazil. The supply of energy needs to be reliable, at fair prices and internationally competitive, in addition to generating opportunities for small entrepreneurs and creating hundreds of thousands of jobs. | The government will invest in improving the energy model, guided by the following guidelines (1) resuming public control, halting privatizations; (2) diversifying the electric matrix, directing investments to expand generation with renewable energies (solar, wind, and biomass); (3) fair tariffs; and (4) social participation. Eletrobras will regain its strategic role in the Brazilian energy system, contributing to the expansion of generation and transmission of energy in the country. |
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