The return of fuel subsidies in several emerging market countries may keep oil demand growth on track, muting the price effect on consumer behavior.
Populist candidates in Colombia, Brazil, and Mexico have campaigned on dramatic new reforms for state-run oil industries and are now gaining momentum in polls.
Higher diesel prices in Brazil have led to nationwide protests and have become a major political issue ahead of this year's presidential election.
Upcoming presidential elections in Latin America could be decisive in advancing policies to maintain oil revenues. However, in the current climate of growing polarization and deeply unpopular incumbents, the elections are generating tremendous political uncertainty.
The promising results from Brazil's auction demonstrate that the country's offshore sector remains attractive even as the global oil industry has been hesitant to invest in big projects as a result of relatively low oil prices.
Recent reforms scrapped the requirement that Petrobras own a 30 percent stake in all pre-salt oil fields, essentially opening the door to private international companies. As a result, Brazil's oil production is flourishing.
While growth in shale has garnered a lot of attention, overlooked is the fact that Canada and Brazil are expected to add a combined 2 mbd over the next five years.
While Brazil’s political future hangs in the balance, Petrobras—the state oil company at the center of Brazil’s largest corruption scandal—faces great uncertainty, and momentous change will be needed to right its course.
The Panama Papers are another reminder of the extreme wealth, corruption, and opaqueness that is common to leadership in so many oil producing countries.
Developing oil and gas in Brazil means dealing with the country's beleaguered state oil company, Petrobras. In spite of this impediment, Royal Dutch Shell is doubling down on Brazil.