Brazil's state-run oil company, Petrobras, plans to significantly increase oil production, aiming to become the world's third-largest oil producer by 2030.
This expansion challenges President Luiz Inácio Lula da Silva's environmental and climate commitments, including reducing Amazon deforestation and promoting renewable energy.
Despite global calls for reducing fossil fuel reliance, Petrobras and Brazil see their oil development as essential for economic growth and poverty alleviation.
Key quote:
“Having it both ways is very much part of Brazil’s policy DNA.”
— Oliver Stuenkel, professor at the School of International Relations at Fundação Getulio Vargas in São Paulo
Why this matters:
Investing in new oil infrastructure and exploration can lock in dependency on fossil fuels for decades, diverting resources from renewable energy investments. This not only hampers the transition to a greener economy but also risks creating stranded assets—investments that will become obsolete as the world moves towards more sustainable energy sources.
Ahead of U.N. meetings this week, thousands are marching through Midtown to demand that President Biden and other world leaders stop new oil and gas drilling.
Even as fossil fuel extraction declined in the state, low-income, Black and Hispanic residents continued to face disproportionate risks from living near wells, and Black residents were exposed to the most intensive operations.
The president will put the entire Arctic Ocean off limits to oil and gas leasing Monday, according to a White House official, as the administration nears approval of the Willow drilling project in Alaska.
