Making Sense of WikiLeaks (cont’d): Brazil, Oil, and U.S. “Diplomacy”

January 17, 2011

Continuing my pointless “I got the day off” wikileaks search for info on U.S. investment in Brazil’s oil industry, I found this classified cable on August 2005 meetings between Brazilian and U.S. trade representatives. Of particular note is the section on trade liberalization — specifically, a comment made by a mining magnate that was present:

Roger Agnelli of mining giant CVRD observed that Brazil and the U.S. have complementary economies that would stand to gain substantially from integration.

I wondered why he would even be there, so I looked up Agnelli and it turns out that in addition to the iron-ore business CVRD (now known as Vale), he also sat on the board of Petrobas, Brazil’s state-assisted oil company, and on Anadarko’s Global Advisory Board. Master Caution followers of the last few hours (all zero of you) will remember that Anadarko was one of the companies present at the 2008 meeting between U.S. oil companies and the Ambassador to Brazil that kicked off my interest in this subject in the first place.

That 2008 meeting, which took place just days after the price of oil topped $100 for the first time, also took place in a time of exciting oil discovery off the Atlantic Coast of Brazil. Two weeks later, Petrobas would announce the discovery of another enormous natural gas and oil condensate field nearby in the Atlantic, and energy pundits would wonder aloud in the coming months whether Brazil’s reserves would create a petroleum-independent Western Hemisphere.

“Pre-salt oil is like a pretty woman on a dance floor full of men,” Luiz Inácio Lula da Silva, Brazil’s president, put it bluntly. “Everybody wants a go.”

Flash forward to January 1, 2011, and newly sworn in Brazilian President Dilma Rousseff calls the oil and gas reserves off her Atlantic coast Brazil’s “passport to the future.”

I’m still having trouble connecting the dots here. I kind of feel like the U.S. government, in the form of vehicles like the U.S. Commercial Service and others, went down to Brazil over the course of the 2000s and pushed for more open trade policies because major U.S. oil companies told them to. My eyes hurt and I need more coffee and I’m not sure the story goes any further than that, nor am I sure that it’s all that interesting. U.S. companies meddling in South American politics for the benefit of energy companies: big deal, right? Still, it’s an interesting research project and it’s keeping my mind active while I wait to hear back about grad school applications.

More soon. Any help/comments/direction would be much appreciated.

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