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Petrobras is losing ground in oil exploration and growth as economic policies of the Rousseff government focus on lowering unemployment in Brazil. Unemployment in Brazil is at 5.4% in 2013 but growth has slowed sharply to about 1%. Government policy requires Petrobras to buy from Brazilian companies to increase employment. The share price of Petrobras has fallen sharply in recent years down to where its market capitalization in less than the Colombian oil company. Oil production is not keeping up with growth in the economy.
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Brazil Moves to Join Other Major Oil Nations
Wall Street Journal 10.22.2013
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Brazil’s Star, Petrobras, Is Hobbled by Scandal and Stagnation
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Brazil’s presidential election: Why Brazil needs change
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Brazil’s Finance Minister Replaced
New York Times 12.18.2015
Petrobras, Brazilâs Oil Giant, Struggles to Regain Lost Swagger
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