• 1 day PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 1 day Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 1 day Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 2 days Shell Restarts Bonny Light Exports
  • 2 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 2 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 2 days British Utility Companies Brace For Major Reforms
  • 2 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 3 days Kinder Morgan Warns About Trans Mountain Delays
  • 3 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 3 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 3 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 4 days Exxon Starts Production At New Refinery In Texas
  • 4 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 5 days Enbridge Pipeline Expansion Finally Approved
  • 5 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 5 days OPEC Oil Deal Compliance Falls To 86%
  • 5 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 6 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 6 days Aramco Says No Plans To Shelve IPO
Power Struggles In The DRC Are Hampering Energy Potential

Power Struggles In The DRC Are Hampering Energy Potential

The Democratic Republic of Congo…

Oil Fundamentals Overturn Geopolitical Risk

Oil Fundamentals Overturn Geopolitical Risk

Geopolitical risk from Iraq and…

Brazil May Turn to Gas as Drought Cuts Off Power

Brazil May Turn to Gas as Drought Cuts Off Power

Brazil has arguably the greenest and cleanest economy in the world, as it gets 80% of its electricity from hydropower and only a small share from fossil fuels. Yet a prolonged drought has reservoirs running dry, and in some of the most populated areas that is leading to blackouts. In an effort to shore up the country’s energy supply ahead of the much anticipated world cup, the government has suggested it may provide financial support to utilities to cover the cost of increased electricity from thermal sources to make up for the shortfall.

Brazilians are suffering through their driest January since 1954, and the shortage of water has led to blackouts in eleven states, including six that will be hosting World Cup games. The Finance Minister said that the government may need to spend up to 9 billion reais ($3.78 billion) to boost energy supplies – equivalent to the amount the country spent on roads for all of 2013. That means using more natural gas to keep electricity flowing. “Any calculation on the magnitude of that help is still too premature,” Muricio Tolmasquim, an official at the Ministry of Mines and Energy said. “But we want to make the distribution utilities assured that we won’t allow them to be hurt in a situation that is not their fault.”

Related article: Argentina: Hydropower Plans and EU Bio-Diesel Duties

While the government is not in a strong position to step up spending amid slow growth and concerns from international investors about the country’s finances, President Rousseff is also reluctant to increase electricity prices on millions of people still fuming after the 2013 protests. The cost of living has skyrocketed in recent years and it only took an increase in the cost of a bus ticket to set off public unrest last year. It appears the federal government would rather eat the cost than risk instability again. And with the globe watching Brazil as the World Cup approaches, the government will likely do whatever it takes to keep the lights on.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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