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Threat to oil supply reinforces Brazil’s need to expand reserve, says Firjan


The possible increase in oil in the international market, with the aggravation of conflict in the Middle East after US attack on three nuclear facilities in Iran, should raise production costs, reinforcing the price increase of derivatives and spreading through other industries, said on Sunday, 22, Karine Fragoso, General Manager of Petroleum, Gas, Energy and Naval of the Federation of Industries of Rio de Janeiro (Firjan).

“We are concerned about the price of oil and also the impacts that the closure of the Ormuz Strait may have in other production chains,” he said, in relation to the possible closure, by Iran, a relevant route of commodity supply.

“As equipment importers, we can be hit by the high price, which can result from the reduction of energy supply.”

The executive evaluates that the energy market already lives a high price phase globally, with the search for cleaner matrices. In this environment, the reduction of supply and maintaining demand would inevitably lead to higher costs.

“This plays light on how important the recomposition of our reservations is. Today, we are under 13 years old, which adds us unnecessary risks and puts us in a disadvantage position against other economies,” he said, defending the exploration of the five basins of the Equatorial Margin and the Pelotas Basin and remembering that ten years ago Brazil had 23 years of proven reservations.

In addition, Fragoso said, it is necessary to increase the refining capacity for the oil produced in Brazil, adapting the industrial park, which dates back to the 1980s, and advanced in a regulation that encourages the increase in production in mature fields, such as the Campos Basin.



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