Pre-salt layer to take Brazil to OPEC, says cartel
Folha de S. Paulo
The growth in the production of oil, should it take place as the Government foresees, will accredit Brazil to become a member of the OPEC (Organization of the Petroleum Exporting Countries). The statement was made by the Managing Director of the cartel to Saudi Arabia, Majid Al-Moneef, who was in Rio yesterday. Al-Moneef's expectation is based on the estimates of the Government that, before 2020, Brazil will begin exporting 2.2 million barrels of oil a day, due to the pre-salt layer reservoirs.
According to the Ministry of Development, in April Brazil exported, on the average, 608 thousand barrels a day and it imported 423 thousand - a 185 thousand barrel balance. Together, the OPEC countries export 25 million barrels a day. "One of the prerequisites to become a member of the OPEC is to be a major exporter. Brazil may be, it is not yet, though. Most projections show the production growing dramatically. When it happens, the country will be eligible. It depends on Brazil", said Al-Moneef, in Rio.
Led by Saudi Arabia, with one-third of the world's oil reserves, the OPEC gathers 12 countries with the greater reserves. Most countries are in the Middle East, but there are members from other continents, such as Venezuela. The group sets the pricing policy and production volumes to its members with the purpose of putting pressure in the world market. To integrate the cartel, says al-Moneef, Brazil will have to abide by the rules of the Association, which imposes the members export limits and prices, for instance. Today Brazil produces 2 million barrels a day, a volume close to that consumed domestically. Part of the production is exported - the petrochemical park does not process the heavier type of oil currently produced in the fields. The country imports fuel and light oil.
For consultant David Zylbersztajn, partner of DZ Negócios em Energia and former President of the Brazilian National Oil Agency, intending to become a member of the OPEC is "a foolish pride". "The OPEC has already controlled 70% of the world production. It currently controls only 30% of it. We do not know how strong the entity will be in the coming years, in a world that desperately seeks alternative sources to the oil due to geopolitical and environmental reasons". Considered the main world authority on energy and author of "The Prize: The Epic Quest for Oil, Money, and Power", economist Daniel Yergin said the role of the country in the G20 (that gathers the main Nations of the world) would considerably increase in case it became a member of the OPEC.