Channels, Fall 2018

Page 114 Thompson • Seeing Green same time, Gazprom’s natural gas is still as important as a clean energy source as opposed to European coal, which the European Union is gradually seeking to replace via renewable energy sources (Reed, 2014). As Brazil’s largest energy, extraction and petroleum corporations covered large costs and supported environmentally friendly options at an earth summit in Rio de Janeiro in 2012. Notwithstanding this seemingly positive environmental support, many environmental activists are opposed to the projects of these companies as environmentally dangerous as in the case of the Belo Monte dam. Yet the Brazilian government has stated it still seeks to include these industries to “bring these industries closer to environmental-friendly standards (Barnes, 2012).” Petrobras specifically has set high standards of production for itself in the next ten years to surpass other Latin and South American global producers of energy in light of its deep-sea oil deposit discovery. Despite these ambitions, Brazil faces various obstacles and charges of corruption as it seeks to develop its industry. In 2007, Petrobras made discoveries of oil off the coast in the deep-sea areas in the pre-salt layers 5 . Although the NOC has invested heavily into these newer reserves, the project is costly and there is a lack of crude oil refineries. Yet the development of pre-salt oil extraction will also have a negative towards future sustainable development and result in an increase of GHG emissions. Vincent Bevins (2011), reporting for The New York Times , quotes Mr. Boechat, professor and specialist in sustainability, that “this will likely become a very serious problem. I don’t think Brazil, or most of Latin America, will end up soon making the choice to ensure big emissions reductions just for the sake of increased responsibility” (para. 4). Vincent Bevins notes the big oil discovery has removed attention from the development of renewable resources and that oil and natural gas are often directly opposed to sources of renewable energy. As Brazil seeks to invest in its oil fields, the large financial costs remove monetary resources and potential investment from its cleaner energy initiatives. South American nations still only make up a small proportion of global output of renewable energy. Additionally, increased investment in oil creates a dependence on petroleum which poses a challenge to its agenda of sustainable development (Bevins, 2011). With the rise of onshore shale formations, there has been a reduced demand for oil and natural gas extraction in harder to reach areas. As a result, Petrobras has recently struggled to keep up with the energy demands of its population, having to import not only gasoline but ethanol as well. Petrobras has also faced increasing debt as major projects are placed on hold. Romero (2013) notes there are accusations that these woes were furthered by previous president Rousseff in 2012 as she sought “to shield the Brazilian population from the nation’s economic slowdown (para. 4)” by creating jobs. Another specific instance is the requirement of Petrobras to purchase its naval vessels and oil platforms from local shipyards as a means of achieving political objectives. These goals are accomplished 5 The deep sea is the lowest layer of the ocean beyond the continental shelf and will often hold pre-salt layers. Pre-salt is formed from sedimentary rock and other organic material that accumulate in the depressions between two continental shelves which is then trapped under a layer of salt from the ocean. Pre-salt deposits are common on the American and African continental plates (Petrobras, 2018).