Thursday, February 20, 2025

Brazil’s National Council for Energy Policy has accepted its invitation to become a member of OPEC+!

Happy Thursday! 

We love a follow-up!  We blogged on Brazil’s Mines and Energy Minister attending an OPEC+ meeting back on November 30, 2023, and he left with an invitation and its official documentation to join, and until now we hadn’t heard anything on the subject.  Well, I guess the papers are signed.

Did anyone happen to read The Houston Chronicle’s Business Section on February 19, 2025, they republished an article from the Associated Press titled, “Brazil is approved to join influential OPEC+”? In the article, it goes on to speak about how on Tuesday the Brazilian National Council for Energy Policy, a government agency, accepted an invitation from OPEC+ to become a member of the prominent group as well as becoming a member of International Energy Agency and the International Renewable Energy Agency.  OPEC+ is made up of the 12 members of OPEC plus 10 members from other prominent oil producing countries.  OPEC+ tries to even out the price of oil by strategizing on if they should reduce or increase the supply by the amount they drill daily.  The Brazilian Mines and Energy Minister, Alexandre Silveira de Oliveira acknowledged they would be working together nonetheless they will not be expected to follow the daily drilling recommendations.  Brazil yields approximately 4.3 million barrels of oil a day or 4% of the world’s supply which makes them seventh on the list of oil producing exporting countries, although the U.S. is number one, and we currently supply the world with 22 million barrels a day.  In 2024, Brazilian produced oil became its number one export, and Brazil is using the money to help fund its transition to renewables or green energy.  Brazil’s National Council for Energy Policy agreed to join these agencies or groups so it would have a better understanding of emerging technology as well as a seat at the table for information.   Brazil will be holding the United Nations annual climate summit, COP30, in the Fall.  OPEC+ is currently continuing production cuts in 2025, then in April it appears they will begin increasing production according to Reuters.  If you would like to read more Associated Press’ article in The Houston Chronicle, please click the link: Brazil to join OPEC+, group of major oil-exporting nations.

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We hope you have a wonderful evening and a great rest of your week!  

**Disclaimer: You may be charged a fee to read the article in The Houston Chronicle. **