O Power 360in partnership with the CBIE (Centro Brasileiro de Infraestrutura), launches this Friday (4.Nov.2022) another episode of the program “Down in 1 minute”. In weekly analyses, Pedro Rodrigues, a partner at the consultancy, talks about the main issues that marked the week in the energy sector.
The program is published every Friday in the channel of Power 360 on Youtube. sign up here and turn on notifications.
In this 22nd episode, Pedro Rodrigues talks about the impact on the energy sector of road blocks, which have been taking place since last Sunday (30.Oct.2022) in protest against the election of Luiz Inácio Lula da Silva (PT). Supporters of President Jair Bolsonaro (PL) occupied until this Thursday (3.Nov.2022) at least 61 stretches of roads in 6 states.
According to Rodrigues, in the energy sector, the greatest impact is on the fuel distribution chain. “Although Petrobras said on Tuesday that the blockades have no effect on the operation of its refineries, agents from other stages of the fuel chain point to a risk of shortages in certain locations”it says.
Watch (2m18s):
INFRA IN 1 MINUTE
Watch the last 5 episodes below or everyone here:
episode 17
Pedro Rodrigues talks about the impact of the delay in starting the operation of the Rota 3 project. The gas pipeline is essential to expand the flow of natural gas from the pre-salt fields and has been planned at least since 2014.
Route 3 is one of the 3 pipelines for the outflow of pre-salt gas in the Santos Basin. The pipeline flows into the Gaslub Complex – formerly Comperj, which was resized after the Lava Jato operation.
On September 23, Petrobras announced to the market the termination of its contract with SPE (Specific Purpose Entity) Kerui-Método, the company responsible for the works of the Natural Gas Processing Units at the GasLub Polo, in Itaboraí. As a result, the expected start of operations at the site was postponed to 2024.
Watch (2min13s):
episode 18
Pedro Rodrigues talks about the decision by OPEC+ (Organization of Petroleum Exporting Countries and allies), a group of the world’s largest producers, led by Saudi Arabia, to reduce oil production by 2 million barrels a day in November. It is the biggest cut in production since the beginning of the pandemic in 2020.
Pedro Rodrigues says that the measure can be analyzed as a sign of intention to keep prices high. According to him, it is “possible help to Russia to pay for its war in Ukraine and an attempt to undermine the G7’s plan to limit the price of Russian oil on the global market”.
Watch (2min13s):
19th episode
Pedro Rodrigues talks about the possible retreat of North American financial institutions, such as Bank of America, Morgan Stanley and JPMorgan, in relation to the environmental agenda and the goals of decarbonizing the economy by 2050, proposed by the “Race to Zero” campaign. promoted by the UN (United Nations).
According to the newspaper Financial Timeson September 21, at an event held by the Glasgow Financial Alliance for Zero Emissions in New York, financial institutions requested flexibility in terms of the “Race to Zero”. The biggest concern would be related to the legal risks that could arise because of the goals of phasing out coal, oil and gas, such as the ban on investments in these assets.
“The change in posture has evidence of the influence of the growing ‘anti-ESG’ movement in the country”, says Pedro Rodrigues.
Watch (2min47s):
20th episode
Pedro Rodrigues talks about the lag in the price of fuel sold at Petrobras refineries in relation to the value of oil in the international market, which is on an upward trend. Due to the absence of fuel adjustments, the company is under pressure from importers and shareholders to remain faithful to the PPI (International Parity Price).
On October 14, Petrobras exploration and production director Fernando Borges said that the oil company has “It took a while” to pass on increases in the value of oil. He declared that the measure is beneficial “for the society” and follows the state-owned price policy.
According to Pedro Rodrigues, this delay in making the readjustments is only possible because of the state-owned fuel stocks.
Watch (2min01s):
Episode 21
Pedro Rodrigues talks about how Germany reignited the debate on the role of nuclear energy as a safe energy matrix. On October 17, German Chancellor Olaf Scholz extended the life of 3 nuclear power plants until April 2023.
Initially, the plan was to close energy sources on December 31, 2022. In communiquéScholz said the decision was made to avoid a possible energy crisis in the country during the winter.
The measure came after weeks of internal disputes within the government over the postponement of the end of the plants’ activities. The German government had planned to start phasing out nuclear power starting in 2022, but the energy crisis caused by reduced consumption of Russian gas with the outbreak of the war in Ukraine led the country to scrap the plans.
“If one of the countries most critical to technology still depends on it, sector agents are starting to look with different eyes at its role in a safe energy matrix. This announcement demonstrates how rapidly the dynamics of the energy sector can change. More than ever, the importance of energy security and sovereignty is clear”says Pedro Rodrigues.
Watch (2min35s):
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