Brazil oil reforms aim to help the poor

[Judi Lynn]

Brazil oil reforms aim to help the poor

by Staff Writers
Rio De Janeiro (UPI) Aug 31, 2009

Brazil has embarked on extensive structural reforms in its oil and gas industry with the aim of increasing state control and reducing income disparity between various regions.
Greater governmental oversight of a sector largely within state control has long been expected, following numerous pronouncements by President Lula da Silva. But a more equitable sharing of Brazil's oil bonanza has been a bone of contention between the regions where oil production is located, including offshore Rio de Janeiro and areas away from the hub of energy industry activities.

Brazil has the second-largest crude oil reserves in South America, after Venezuela, and is rated by industry experts as one of the fastest-growing oil producers in the world. Rio de Janeiro state and its offshore reserves contain about 80 percent of Brazil's total production.

So far oil-producing regions have enjoyed cash windfalls from royalties while neighboring regions have looked on. Lula has declared his intention to change that.

Increased earnings from oil production and exports, Lula said, belong to the entire nation and should be used wisely to fund wider education programs, industrial and technological development and measures that help ease crushing poverty in the neighboring regions.

More:
http://www.energy-daily.com/reports/Brazil_oil_reforms_aim_to_help_the_poor_999.html