Monday, September 15, 2014

This week's oil as kingmaker in politics

Two stories, completely unconnected and different, where oil will play a big role in the outcome of plebiscites.

In Brazil, the presidential elections, scheduled for October 5, are affected by a major (alleged) corruption scandal involving the state oil company Petrobas. The Economist reports: "Mr Costa, who ran Petrobras’s refining division from 2004 to 2012, has accused more than 40 politicians of involvement in a vast kickback scheme. The list reportedly includes a minister, three state governors, six senators and dozens of congressmen from President Dilma Rousseff’s Workers’ Party (PT) and several coalition allies." Although it does not appear that Ms. Rousseff is directly involved, it may have happened on her watch, and so benefits her challenger, Ms. Silva [].

In the UK, the referendum on Scottish independence [], scheduled September 18, revolves around many things, but there may never have been one if there was no North Sea oil in the first place. However, how much is actually left is still debated []. See also our previous posts, here and here, and a recent FT Lex column [].

No comments:

Post a Comment

Reactions welcome! Please use your full name.