Brazil's government has given the green light to join OPEC+, a coalition of major oil-exporting nations, marking a significant milestone in the country's emergence as a key player in the global oil market. The decision, made by the National Council for Energy Policy in response to an official invitation, underscores Brazil's growing stature as an oil-producing nation.
OPEC+ comprises the 12 OPEC members along with 10 other significant oil-producing countries, with Russia being the largest among them. While Brazil's participation in OPEC+ does not entail mandatory production cuts, it will engage in discussions within the Charter of Cooperation, a platform for dialogue on industry-related matters.
Mines and Energy Minister Alexandre Silveira emphasized that Brazil's involvement in OPEC+ is aimed at fostering collaboration among oil-producing nations and leveraging the country's oil resources for economic growth and job creation. President Luiz Inácio Lula da Silva, known for his environmental advocacy, sees new oil revenues as a means to fund the transition to green energy.
Brazil, currently the world's seventh-largest oil producer, pumps out approximately 4.3 million barrels per day, constituting 4% of global oil output. In 2024, crude oil became Brazil's primary export, accounting for 13.3% of foreign sales, surpassing soy.
Oil expert Luís Eduardo Duque Dutra praised Brazil's move to join OPEC+ and other energy organizations, citing the country's strategic positioning in the energy landscape. He highlighted Brazil's development of pre-salt reserves and renewable energy potential as key factors driving its global relevance.
However, Brazil's decision to expand oil exploration has drawn criticism from environmental groups, particularly as the country gears up to host COP30, the UN climate summit. Critics argue that prioritizing fossil fuel extraction contradicts the summit's focus on reducing greenhouse gas emissions.
Despite differing opinions on Brazil's oil strategy, the country's entry into OPEC+ reflects its evolving role in the energy sector and its efforts to navigate the complex interplay between oil production and environmental sustainability.
