The Oil Industry 's Major Player Petrobras

Oil is the product that each and every one of us use. It can be used for fuel, heating and even cooking. The most often known for unstable price is crude oil or gasoline. According to the The Economist, The main reason for price shifts of oil is oversupply. The oil production in Saudi rose 10.3 million barrels per day. This increase is the effect of a new method that I being applied to oil extraction. This method is called fracking, fracking is where they drill into tight-rock formations then gradually turning horizontal for several thousand feet more. This results to accommodations to multiple oil wells. This new approved method of oil harvesting has raised the productivity gains and reduced the cost of harvesting oil.

The pollution on BP is always a big problem, and related to Europe climate change, do they meet the same standard on anti-pollution?

Some emergent countries have put a lot of effort to find new reservoir or find the best way to recover oil from deep seas such as The pre-salt in Brazil. America has high projections for the future with fracking. However, lower prices would put at risk investments in unconventional sources. For example, tar sands, shale oil, deep sea and fracking. Our forecast is that the crude oil price tend to slowly rise until the market balance it self to avoid oversupply especially because of the weakening in the global oil

Dilma Rousseff- President of Brazil, has a tough agenda to address issues and challenges within Brazil. However, her administration also needs a strong plan for the global stage. I would like to discuss recent global challenges of Brazil .Here are three global challenges Brazil will face in Rousseff’s second term:

Working as Petrobras as a Head of Planning and Enterprise Performance I was responsible to build and coordinate the relationships with the strategic partners of the different oil fields my company had in Joint Venture. One occasion in December, an expensive bottle of whiskey was sent on my name as a present from one business partner who had just joined that year the Joint Venture. Presents are not rare in this relationships, however there are clear limits applicable to the presents so decisions are not influenced by those presents. The present sent to me clearly exceeded the limit stated in our ethic code so first, I reported the case to my direct manager and second, I sent the present back to the business partner explaining the company policies

South American governments have always been somewhat corrupt. However, recent public abuse of resources for private gain -- corruption -- has created a disaster in Brazil, and it seems everyone in power is connected in one way or another. During the past fourteen years, construction company executives (among others) colluded to overcharge Petrobras, a state-owned entity, for government contracts, and Petrobras executives looked the other way in exchange for bribes. Petrobras executives then bribed government officials to keep them quiet. (Beauchamp). No one knew about these deals until oil prices unexpectedly dropped, creating massive debt and exposing the deficit the corruption created. The scandal has effectively strained the government's

In addition to the challenging economic policy issues it is confronting, Brazil has simultaneously been in a very fragile political state ever since the Petrobras scandal investigation, known as Operation Lava Jato (Carwash), was initiated in 2014. In order to appreciate the significance of the Petrobras scandal and its negative impact on the people’s trust, it is important to comprehend the significance of Petrobras, the state-owned oil giant, and its role in Brazilian society. In Galster’s 2009 article, he discusses the nationalization of the oil industry in Brazil, the creation of Petrobras, and how it acquired its power and political influence. Galster emphasizes how the oil industry barely existed fifty years ago, and that it became very successful due to shrewd policies, such as keeping up to date with the latest technologies and implementing free market mechanisms. Also, Petrobras is a multinational oil company controlled and majority owned by the Brazilian federal government, but it is traded on the stock markets around the world, unlike most other Latin American countries (Galster, 2009).

Former President Lula da Silva: Lula is a former union leader who is part of the Left-Wing, Worker’s Party who is being questioned for the Petrobras scandal. He was the President of Brazil from 2003-2011, and he is suspected of benefiting from billions of dollars generated from larger contracts that funded his campaign and pockets. During his presidency, he helped bring up commodity prices to a growth rate of 7.5% in 2010. Further, he was the most admired political figure in the world for driving out poverty in Brazil, and his country hosted the World Cup, as well as hosting the summer 2016 Olympics.

Like any other continent with industrialized countries South America faces ethical dilemmas, sustainability issues, and corporate social responsibilities when dealing with international or domestic businesses. Most of the problems in South America revolved around corruption and bribes by business or government officials. The South American countries that standout the most are Brazil and Venezuela due to the vast amount of corruption that has recently been brought to light worldwide. Corruption there has hurt their countries economy and the South American region as a whole.

If one of these CEO’s makes a mistake or decides to be corrupt they have the capability of affecting things all over the planet. That is why the movie “The Wolf of Wall Street” is so interesting. This film shows multiple examples of a CEO making choices to be corrupt, which has the capability of affecting a lot of people. This essay is going to explain how an American company can have a large effect on the world through using example from “The Wolf of Wall Street.”

Contracts with Petrobras increased the need for new employees in the companies, mainly experts in various areas of engineering: piping, mechanical, hydraulic, civil, petroleum and gas, in addition to new designers and IT experts. It is worth emphasizing that the IT park of the companies investigated has undergone significant changes based on the contracts with Petrobras, due to the specificity of the software dedicated to its projects. With the new employees, new departments and new working routines were created, which were intended to leverage different areas of engineering.

João Nogueira Batista, Chief Financial Officer of the Brazilian firm Petrobras, reflected on Gros’s words as he prepared for a Board of Directors meeting in July 2002. The main item on the Board’s agenda was the proposed acquisition of an Argentinean firm, the Perez Companc Group, or Pecom.2 The acquisition would significantly increase Petrobras’s oil and gas production and add to its oil reserves. It would also provide the mainly Brazilian-based

Exxon and Chevron are no doubt some of the leading incorporated oil companies on the globe. Exxon Corp. is the second largest oil firm after Royal Dutch Shell, it is respected for getting the biggest revenue return in 2008 which no company in the U.S. have ever reported before. According to Wilson (2009) Chevron has managed to show a lot of profitability in the market despite the decease in its oil production. It graded as one of firms which made a billion dollars profit within a week in the period of July to September 2008. Regardless of profitability trends set by the two oil firms in the U.S. market, they have been facing financial decline like the rest of the companies in other industries. The two firms are like two sailing ships which are taking longer time to sink. In the last few years, the production capacity of Chevron and Exxon has decreased and their listings on the stock market have become weak. The continuation of construction and drilling which requires billions of dollars in expense of oil production might make them experience a bigger financial crisis (Wilson, 2009).

The oil-rich Bolivarian Republic of Venezuela, located on the northern coast of South America, was for many decades considered among the wealthiest nations in the entire continent. While having the largest proven oil reserves in the world has often proved a tremendous boon for Venezuela, the very black gold that has been the cause of its success has also proven to repeatedly be its kryptonite. Over half of the nation’s Gross Domestic Product stems from petroleum exports – which equates to approximately 95% of total exports. It is really not too hard to imagine what drastic consequences shifts in global oil prices could have on the economy.

The BOP of Brazil (exhibit 5) shows that since 2000 the country was constantly a net exporter until 2014. The profile of its exports consists mainly of raw materials such as crude oil, iron, raw sugar, soybeans, etc. The collapse of commodities prices (exhibit 9) in the middle of 2014 reduced the ability of Brazil’s economy to end 2014 with a positive current account. The fall of oil prices also strongly contributed to that and Brazilian economy finished 2014 with a deficit in the Balance of goods of nearly $ 4 billion. Brazil’s GDP as expected finished 2014 with just 0.1% growth, announcing that tough times would follow.