BRAZIL JOINS OPEC+ from Vajirao & Reddy Institute

BRAZIL JOINS OPEC +

• On February 18, 2025, Brazil's government approved its membership in OPEC+.
• It's a sign of the country's increasing importance as a global oil producer.
• OPEC+ serves as a platform for cooperation & strategy discussions among oil producing nations.

• It is a group of 23 oil-exporting countries which meets regularly to decide how much crude oil to sell on the world market.
• These nations aim to work together on adjusting crude oil production to bring stability to the oil market.
• Production Share: OPEC+ nations account for approximately 40% of global crude oil production.
• At the core of this group are the 13 members of OPEC (the Organization of the Oil Exporting Countries), which are mainly Middle Eastern and African countries.
• Members: It comprises 13 OPEC countries plus Azerbaijan, Bahrain, Brunei, Kazakhstan, Russia, Mexico, Malaysia, South Sudan, Sudan, Oman &

• It is a permanent intergovernmental organization of oil-exporting countries.
• Mission:
  • To coordinate and unify the petroleum policies of its Member Countries.
  • Ensure the stabilization of oil prices in the international oil markets, with a view to eliminating harmful and unnecessary fluctuations.
• Formation: It was established in 1960 by the five founding members Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
• Currently, it has 13 members, including Algeria, Angola, Congo, Equatorial Guinea, Gabon, Libya, Nigeria, and the United Arab Emirates
• Headquarters: Vienna, Austria.

• Oil Production: Brazil is the 7th-largest global oil producer, producing 4.3 million barrels per day (roughly 4% of global output).
• Oil Exports: In 2024, crude oil became Brazil’s top export, surpassing soybeans and accounting for 13.3% of the country’s total exports.

• President Lula’s Position: President Luiz Inácio Lula da Silva envisions using oil revenues to fund a shift toward renewable energy while continuing efforts to reduce Amazon deforestation and safeguard Indigenous rights.
• Exploratory Drilling: Lula has advocated for drilling in the Amazon River region, a highly biodiverse area, to access untapped oil reserves.

• Climate Debate: Brazil's growing oil production has drawn criticism, especially as the country prepares to host COP 30 in November 2025.
• Climate advocates warn that expanding fossil fuel exploration undermines efforts to combat climate change and reduce global carbon emissions.
• Opposition to OPEC+ Membership: Suely Araújo from the Climate Observatory argued that joining OPEC+ and opening new fossil fuel exploration areas is a step backward in addressing climate change. This is especially concerning ahead of COP30, where reducing fossil fuel reliance is a key focus.

• COP30 Role: Brazil will host the 2025 CoP 30 climate summit, where global leaders will discuss climate change mitigation strategies.
• Brazil’s dual role as both an oil producer and a climate summit host will be under close scrutiny.
• The Challenge Ahead: Brazil faces the challenge of reconciling its expanding oil production with global calls for more sustainable energy practices.
• Its oil policies will be a key point of discussion and critique during COP 30.