Impeachment and energy: do they mix?

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Two of the region's energy giants, Venezuela and Brazil, are mired in political crises that threaten to remove their current presidents from office. The outcomes of these crises have implications for the overall performance of these countries' economies, and for the future of their energy sectors. In this post I seek to answer two questions: What is the likelihood that Nicolás Maduro and Dilma Rousseff will not make it to the end of 2016 as presidents? and What are the implications of a presidential crisis for Venezuela and Brazil's energy sectors? 1. How likely is it that Nicolás Maduro and Dilma Rousseff will make it to ...

Brazil: getting Petrobras out of the way

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On February 24, the Brazilian Senate voted to pass a bill to eliminate the requirement that Petrobras, the Brazilian state-owned oil company, be partner and sole operator of all investments in the Pre-salt oil and gas deposits off the coast of Brazil. If the bill successfully passes the lower House and avoids a presidential veto, it may be breathe some fresh air into a financially troubled company at the center of a severe political crisis. Recent history The state's monopoly over hydrocarbon resources and the exclusive role for Petrobras in extracting, refining, and commercializing them was established in 1953. This ownership regime was first altered in ...