The effects of the COVID-19 pandemic on Oil gepolitics and Brazil

Abstract

The expansion of the Covid-19 pandemic throughout the world has an impact at the oil’s market landscape, at the moment and beyond. From this scenario, the present paper seeks to analyze the effects of the pandemic on the geopolitics of oil, especially in Brazil. Based on the principle that the pandemic serve as a catalyst to a process, already in progress, of oil becoming an abundant resource, not anymore in risk of depletion as previously expected. Then it’s highlighted the conflicts among countries in questions such as productions cuts, tanking and, most of all, about the recent prices drops, linking both the impacts on national economies and their energy planning sectors. Finally, regarding Brazil, it is debated about how this scenario affects it’s energy policy, in particular -Petrobras –it’s major oil company and State representative in oil issues, even more relevant due to the Pre-Salt layer, which is responsible for an increasing Brazil’s participation in the global market. To do so, we must take on account the impacts of the oil cuts, falling demand, fiscal issues and threats to Brazil’s oil industry and its own economy.