The Oil Crisis To Impact The Economy By US$ 13 B

The crisis in the oil sector will generate R$ 62 billion (US$ 13 B at current exchange rates) less in income for the country through 2019. The estimate was presented by Energy Economics Group (GEE) of the Federal University of Rio de January (UFRJ), last Friday (October 16) during the workshop on Economic Impacts of the Crisis in Oil Sector, promoted by the Brazilian Petroleum Institute (IBP) in Rio de Janeiro.

The oil price fall made the major oil companies revise their investment programs in Brazil. This year, the projected amount to be contributed by the oil until 2019 fell from US$ 236.7 billion to US$ 130.3. The decline is 45%, and the impact on national income is R$ 12.4 billion (US$ 3.2 B) a year.

The damages caused by the crisis affecting the revenues of states and municipalities that are dependent royalties, especially in Rio de Janeiro.

“This decrease is due mainly to the reduction in oil prices in the international market,” explained GEE’s economist, Marcelo Colomer.

For the executive secretary of the IBP institute, Milton Costa Filho, the data are worrying, and we must build a positive agenda in an attempt to bring back investments to the country.”The last auction of the National Petroleum Agency (ANP) reinforced the concern, with the participation of few actors. We need to review regulatory issues to make Brazil a more attractive country for investment by the oil companies.”