Brazil: Lula advocates oil exploration despite criticism

Brazilian President Lula defends offshore oil exploration near the mouth of the Amazon, despite opposition from environmentalists and his own Environment Minister.

Share:

Exploration pétrolière Amazonie

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Brazilian President Luiz Inacio Lula da Silva recently declared that offshore oil exploration near the mouth of the Amazon represents an opportunity to stimulate Brazil’s economic growth. The announcement, made at a meeting in Rio de Janeiro with Saudi Arabian investors, sparked off considerable controversy. Lula stressed that all activities must be legal and environmentally friendly, but insisted that Brazil cannot afford to neglect this opportunity for economic development. Lula has been criticized by many environmentalists for his stance, especially as his Environment Minister, Marina Silva, is firmly opposed to the project. Ibama(Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis) already refused last year to issue a license to Petrobras, Brazil’s state-owned oil company, for exploration in this region, due to the lack of adequate studies.

Internal conflict and international pressure

The new president of Petrobras, Magda Chambriard, took office last month and has expressed her desire to accelerate exploration of new reserves, including in the controversial region near the mouth of the Amazon. This position has heightened tensions within the Brazilian government. Chambriard is determined to explore new energy sources to meet growing demand, despite environmental concerns. Environmentalists find it paradoxical that Lula should defend fossil fuel exploration when he has made the fight against climate change a priority, notably by halving deforestation in the Amazon last year. This region is crucial to the global ecological balance, and the contradiction between Lula’s environmental objectives and his economic initiatives raises questions about the coherence of his policies.

COP30: A Test of Truth for Brazil

Next year, Brazil will host the COP30 (Conference of the Parties) in Belém, an emblematic Amazonian city. This international event will be crucial in assessing global efforts to combat global warming. Lula reiterated that global cooperation is essential to avoid catastrophic levels of climate change, citing the recent devastating floods in southern Brazil as an example of the tangible impacts of the climate crisis. COP30 in Belém could prove to be a litmus test for Brazil’s credibility on the international environmental policy scene. Lula will have to balance the country’s economic development needs with his commitment to environmental protection. The pressure is on to demonstrate that Brazil can both exploit its natural resources responsibly and play a leading role in the fight against climate change. The opposition of Marina Silva and other environmentalists shows the scale of the challenge facing Lula. The final decision on offshore oil exploration could have lasting repercussions not only for the Amazon ecosystem, but also for Brazil’s position as a world leader in the fight against global warming.
Lula’s energy policy and its impact on the environment will remain at the heart of national and international debates, particularly in the run-up to COP30. Brazil is at a crucial crossroads where it must strike a balance between economic development and environmental preservation to ensure a sustainable future.

Greek shipowner Imperial Petroleum has secured $60mn via a private placement with institutional investors to strengthen liquidity for general corporate purposes.
Ecopetrol plans between $5.57bn and $6.84bn in investments for 2026, aiming to maintain production, optimise infrastructure and ensure profitability despite a moderate crude oil market.
Faced with oversupply risks and Russian sanctions, OPEC+ stabilises volumes while preparing a structural redistribution of quotas by 2027, intensifying tensions between producers with unequal capacities.
The United Kingdom is replacing its exceptional tax with a permanent price mechanism, maintaining one of the world’s highest fiscal pressures and reshaping the North Sea’s investment attractiveness for oil and gas operators.
Pakistan confirms its exit from domestic fuel oil with over 1.4 Mt exported in 2025, transforming its refineries into export platforms as Asia faces a structural surplus of high- and low-sulphur fuel oil.
Turkish company Aksa Enerji has signed a 20-year contract with Sonabel for the commissioning of a thermal power plant in Ouagadougou, aiming to strengthen Burkina Faso’s energy supply by the end of 2026.
The Caspian Pipeline Consortium resumed loadings in Novorossiisk after a Ukrainian attack, but geopolitical tensions persist over Kazakh oil flows through this strategic Black Sea corridor.
Hungary increases oil product exports to Serbia to offset the imminent shutdown of the NIS refinery, threatened by US sanctions over its Russian majority ownership.
Faced with falling oil production, Pemex is expanding local refining through Olmeca, aiming to reduce fuel imports and optimise its industrial capacity under fiscal pressure.
Brazil’s state oil company will reduce its capital spending by 2%, hit by falling crude prices, marking a strategic shift under Lula’s presidency.
TotalEnergies has finalised the sale of its 12.5% stake in Nigeria’s offshore Bonga oilfield for $510mn, boosting Shell and Eni’s positions in the strategic deepwater production site.
Serbia is preparing a budget law amendment to enable the takeover of NIS, a refinery under US sanctions and owned by Russian groups, to avoid an imminent energy shutdown.
Nigeria’s Dangote refinery selects US-based Honeywell to supply technology that will double its crude processing capacity and expand its petrochemical output.
Iraq secures production by bypassing US sanctions through local payments, energy-for-energy swaps, and targeted suspension of financial flows to Lukoil to protect West Qurna-2 exports.
Restarting Olympic Pipeline’s 16-inch line does not restore full supply to Oregon and Seattle-Tacoma airport, both still exposed to logistical risks and regional price tensions.
Faced with tightened sanctions from the United States and European Union, Indian refiners are drastically reducing their purchases of Russian crude from December, according to industry sources.
Serbia’s only refinery, operated by NIS, may be forced to halt production this week, weakened by US sanctions targeting its Russian shareholders.
Glencore's attributable production in Cameroon dropped by 31% over nine months, adding pressure on public revenues as Yaoundé revises its oil and budget forecasts amid field maturity and targeted investment shifts.
The profitability of speculative positioning strategies on Brent is declining, while contrarian approaches targeting extreme sentiment levels are proving more effective, marking a significant regime shift in oil trading.
Alaska is set to record its highest oil production increase in 40 years, driven by two key projects that extend the operational life of the TAPS pipeline and reinforce the United States' strategic presence in the Arctic.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.