• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 28 mins US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 4 hours Marine based energy generation
  • 13 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 1 min China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 1 hour While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 3 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 21 hours Trafigura CEO Weir says, "We will see 30% to 35% drop in demand". That amounts to 35mm bbls/day glut ! OPEC+ 10 mm cut won't fix it. It's a DEMAND problem.
  • 1 hour Which producers will shut in first?
  • 9 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 22 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 1 day The Most Annoying Person You Have Encountered During Lockdown
  • 1 day Cpt Lauren Dowsett

Breaking News:

This Emerging Economy Bets Big On Solar

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

The Worst Oil Trades Ever Made

Wall Street is full of…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

This Energy Heavyweight's Auditors Just Refused To Sign

Brazil has been held up as one of the greatest new energy plays of our times. With massive offshore discoveries yielding some of the largest oil fields to be found in the modern exploration age.

These finds have been expected to add substantially to global crude supply. Assuming they can be developed.

A little more doubt was cast over that issue this week. When serious concerns emerged about the soundness of management at Brazil's state-run oil firm, Petrobras.

Related: Four More Years Of Pain For Petrobras

The warning was sounded by Petrobras' auditors PriceWaterhouseCoopers (PWC). Which refused to endorse Petrobras' third quarter financial statements--saying it needs more information about corporate governance issues within the company.

Specifically, the auditors are looking for clarification on corruption allegations that have come to light around Petrobras. Brazilian police have recently begun an investigation into alleged kickbacks from Petrobras contractors that were funnelled to the political party of President Dilma Rousseff.

In light of these events, PWC reportedly requested more information on potential corruption within Petrobras. Saying that it requires this in order to consider endorsing the most-recent financial statements.

Petrobras is reportedly now considering its next move. With the board of directors having delayed a meeting last Friday, and rescheduling it for later this week.

Related: How Wall Street Is Killing Big Oil

Sources also suggested that PWC has threatened to take the case to U.S. authorities if a satisfactory resolution isn't put forward. A threat that could hold water, given that Petrobras currently trades on the New York Stock Exchange.

Whatever the outcome, these developments are an important indication that Petrobras--and Brazil's oil sector--may have some critical challenges to overcome. Especially as the industry moves toward development of offshore mega-projects, which will require a sophisticated and coordinated approach for success.

Watch for further information on the Petrobras case--which may provide an indication of the direction the company will take in making potential and necessary reforms.

Here's to growing pains,
Dave Forest

More Top Reads From Oilprice.com:

- South America: The World's Next Unconventional Frontier?

- Brazil’s Petrobras Ramps Up Production of Pre-Salt Oil

- Petrobras May Get Political Respite Finally


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News