Petrobras Brett Christner Frank Hong Nicholas Novacco Tyler

Petrobras Brett Christner, Frank Hong, Nicholas Novacco, Tyler Smith

Overview • • Semi-public Brazilian multinational energy corporation headquartered in Rio Integrated energy company with a presence in countries A significant oil producer with output of more than million barrels of oil per day Legal monopolist in oil industry in Brazil 27 2

Overview • Brazilian government directly and indirectly owns 64% of Petrobras’ common shares o • Indirectly 10% : Brazilian Development Bank and Brazil's sovereign Wealth Fund(Fundo Soberano) In September 2010, Petrobras conducted the largest share sale in history o BM&F Bovespa stock exchange

Profile • • 7 th Biggest energy company in the world o source: PFC energy(january 2013) Value of the petrobras brand : R$19. 7 billion = 8. 7 billion USD o source : Brand. Analytics (2012)

Petrobras in numbers • • Energy o 7 biofuels plants o 16 thermoelectric plants o 4 wind plants Production o Daily production : 2. 6 million barrels per day o Reserve : 16. 4 billion barrels of oil and gas

History • • • Created in 1953 under Brazilian president Getulio Vargas “The oil is ours” Petrobras monopolization The oil crisis of 1973 World record for oil exploration Petrobras 50 year mark in 2003

Business ● State controlled company ● Essentially has a monopoly on oil in Brazil ● 7 th biggest energy company in the world and estimated to be worth $8. 64 billion ● Most important assets are petroleum reserves in Brazil ○ Campos Basin ● Domestic sales are majority of the companies profits ● Also works to develop “green energy”

Growth in 2007 -2008 ● Petrobras growth was huge during this time ● Some reason include: Rise in oil prices ○ Increasing demand ○ Relative political stability ○ Discovery of mega-fields ○ ● Became second oil company in terms of value, behind only Exxon. Mobil

Downswing ● Political meddling into Petrobras has created many problems ○ Brazilian government puts cap on oil prices ○ International oil market goes up ○ Forced to buy products from Brazil ● Rising Demand ● Massive Debt ● Has essentially been used by the government for political policy and it cost them ● Net profits fell 36% last year compared to 2011

Future for Petrobras ● After an awful couple years, Petrobras still has a chance at a very bright future ● Mega-fields ○ Biggest oil find in the America’s in the last decade ○ Proven that there is 16 billion barrels of oil there, and the potential to double that ● Looking to triple exports by 2020 ● Potential shift back towards ethanol ● Despite the very poor last couple years for the company, Petrobras still certainly has a chance at success

Recent Endeavours • • • Tupi, Jupiter, Carioca and Bem-te-vi U. S. loaning Petrobras $10 B to finance exploration off coast of Brazil o Petrobras investing another $29 B “Pre-sal” oil fields could rocket Brazil into top 10 producers

Relation to Hugo Chavez • Deal with Venezuela’s Pd. VSA • Chavez and Luiz Inacio Lula da Silva

U. S. Spying • • • NSA monitoring internal Petrobras data September 2013; Edward Snowden docs. Spying on Brazilian President Petrobras spending $21 B over next 5 years on data security Deep water drilling and oil field secrets

Questions ● Will Petrobras be able to come back from its recent failures? Why or why not? ● Is the Brazilian government interfering too much with the business of Petrobras? ● How will revelations of U. S. data mining affect Brazilian/American relations?

Work Cited • • • http: //www. agenciapetrobras. com. br/default_en. asp http: //apps. aiche. org/Proceedings/Abstract. aspx? Conf. ID=Annual-2006&Group. ID=1146&Session. ID=3593&Paper. ID=77492 http: //en. wikipedia. org/wiki/Petrobras#cite_note-15 Petrobras Raises $70 Billion as Investors See Growth". Bloomberg Businessweek. 24 September 2010. Retrieved 05 November 2013. http: //www. nytimes. com/2013/03/27/world/americas/petrobras-brazils-oil-giant-struggles-to-regain-lost-swagger. html? _r=0 http: //www. economist. com/news/americas/21566645 -how-gra%C 3%A 7 a-foster-plans-get-brazils-oil-giant-back-track-perilspetrobras http: //www. forbes. com/sites/kenrapoza/2013/02/08/is-petrobras-worth-a-dime/ http: //www. forbes. com/sites/kenrapoza/2013/02/05/brazil-oil-giant-petrobras-blames-dollar-for-collapse/ http: //www. forbes. com/sites/afontevecchia/2013/08/12/petrobras-takes-pre-salt-oil-production-to-record-highs-as-it-maxesout-refining-capacity/ http: //www. economist. com/news/americas/21566645 -how-gra%C 3%A 7 a-foster-plans-get-brazils-oil-giant-back-track-perilspetrobras http: //www. petrobras. com. br/en/about-us/profile/