Brazil can emerge as the best alternate solution to the ‘oil Curse’, says Sergio Machado

The increased insurgence along with political instability in the Middle East and overtaking of various oil fields by the terrorist group ISIS has brought back old fears to life. There is an impending oil crisis that lies ahead of the world and could stem many global issues. History has been a witness to the infamous ‘oil curse’ ; concentration of power and income, extreme riches, impending attacks and massacres, overthrown of legacies, all because of presence of oil in a country or region. And now with ISIS planning to take control of various oil fields, there has been a keen focus shift of powerful economies towards alternative fuel options. This, is an opportunity where Brazil can emerge on the top, says Sergio Machado.

The world is looking for reliable oil suppliers; the countries which not only have oil in abundance but also have political stability and good prospects for development. Brazil is one of those few countries which fit all the parameters.

Perhaps that is why American President Barack Obama, in his recent visit to the country, touted Brazil as one of the future reliable oil suppliers to the US market.

Sergio Machado, former President of Transpetro said, “With the pre-salt, Brazil will have the world's fifth largest oil reserve. More than that, our democracy is consolidated and our economy grows with social justice, all of which represent a huge comparative advantage. This will definitely improve investor confidence and would attract future international buyers.”

Sergio Machado also remarks present Brazil as the ‘century Brazil’. He adds, “We have practically all the riches that the world needs. We are an energy powerhouse. In addition to the fossil energy, we have a broad potential array of fuels; oil, hydro, wind and solar.  We have a diverse energy mix, clean and almost 50% renewable energy.”

Brazilian economy is looking more than favorable as of now. There is a presence of large amount of land to produce food and that is why powerful economies like China and India are dependent on Brazil for imports. Brazil also holds huge potential for production of cleaner fuels like Ethanol and Biofuel.