Across Latin America, the sustained decline in global oil prices has had a profound impact on economic growth, political stability and the viability of resource nationalism – when governments assert more control over the nation’s natural resources.
To remain competitive, Brazil will have to revise its regulations and reverse many of the reforms instituted just a few years ago.
With Brazil’s state oil company Petrobras engulfed in a massive corruption scandal, the government looks poised to introduce an energy sector overhaul.
Brazil’s oil and gas and electricity sectors are an important destination for Chinese direct investment.
Brazil must focus on reforms that will make Petrobras more competitive and create an attractive investment environment.
How bad is Petrobras’ situation today, and what bright spots are on the horizon?