• 3 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 5 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 9 minutes This Battery Uses Up CO2 to Create Energy
  • 12 minutes Shale Oil Fiasco
  • 3 hours Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 9 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 1 day Indonesia Stands Up to China. Will Japan Help?
  • 20 hours US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 8 hours Beijing Must Face Reality That Taiwan is Independent
  • 1 day Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 1 day Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 22 hours Might be Time for NG Producers to Find New Career
  • 2 days Phase One trade deal, for China it is all about technology war
  • 18 hours Trump has changed into a World Leader
  • 2 days Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 2 days Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Mysterious Oil Spill Could Cost Brazil Billions

Just as Brazil is preparing to hold what could be a blockbuster US$50-billion oil auction in early November, an oil spill of still unknown origin on more than 200 beaches along Brazil’s northeastern coast is raising alarms due to the government having been so slow to react with the clean-up. Fears of the government being inadequate in its monitoring of environmental disasters as domestic oil production continues to grow could threaten the nation’s offshore boom.

Brazil’s Vice President has called the oil spill “unprecedented in the world”, and committed to sending 5,000 troops to help the worst affected areas.

Environmental organizations, politicians, and prosecutors have criticized the government for its poor handling of the oil spill along the beaches in the state of Bahia.  

In some communities, residents have taken it upon themselves to clean up their beaches, tired of waiting on the official cleanup. Some of them, however, have gotten sick from exposure to the crude oil, whose origin remains unclear, Reuters reports.

According to Brazilian Mines and Energy Minister Bento Albuquerque, the oil spilled on the beaches is not of Brazilian origin, “so it has nothing to do with oil and gas activity in Brazil, nothing to do with oil and gas auctions.”

The chief executive of Brazilian state energy firm Petrobras, Roberto Castello Branco, said this week that the oil spill could be the worst “environmental attack” in the country’s history. Related: The Worst Oil Trades Ever Made

Samples from the crude at the beaches are being analyzed in the U.S., France, and Norway to determine the origin, while theories abound as to where the oil came from. Some experts say it’s from Venezuela, and some theories suggest that there has been an accident at sea with a ship with a tracker switched off, or from a ship-to-ship transfer, or from a leak from a shipwreck.  

Meanwhile, Brazil’s government is confident that the oil spill will not affect the oil auctions.

In October and November, Brazil is holding three oil auctions for different areas under different regimes in its offshore basins.

The first auction, held on October 10, attracted major international oil companies, with Big Oil scooping up exploration blocks in the bid round that fetched a record total amount of signing bonuses. The transfer-of-rights (TOR) auction is slated for November 6 and the 6th production sharing round will take place on November 7.  

By Tsvetana Paraskova for Oilprice.com 

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment
  • Jessie Phillips on October 31 2019 said:
    Mysterious huh.... Another excuse to raise oil prices....
  • Jim Diamond on November 02 2019 said:
    It's easy to determine where the oil came from, and how long it's been in the water, on that basis the names of tankers loaded in a time frame that covers the spill, but I'm willing to bet the presence of what sounds like a hell of a lot of crude that a tanker dumped a load of sanctioned oil, possibly as part of a terrorist act or even piracy

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play