Petrobras' (PBR) Chief Expects Another 40 Years of Oil Production
Petrobras (PBR), Brazil’s state-owned oil and gas company, aims to keep producing oil for the ensuing four decades while significantly increasing its investments in renewable energy. The company does so in an effort to promote an energy transition, the company's chief exploration and production officer Joelson Mendes said on Tuesday, per media reports.
At a Banco Santander-sponsored event, Mendes said that Petrobras recognizes that global demand for oil would fall over time but still sees opportunity to commercialize its fossil fuels. He added that PBR is likely to retain a balanced portfolio for at least the next ten years, balancing investments in both oil and renewable energy, while keeping the company’s proved reserves roughly stable.
CEO Jean Paul Prates stated that Petrobras would support the energy transition envisioned by Brazil’s president Luiz Inacio Lula da Silva, but it must continue to produce oil in order to generate revenues and pay for those investments.
Mendes also defended Petrobras' contentious plan to drill a well near the mouth of the Amazon River, in a region known as the Equatorial Margin, a request that has caused dissension within Lula's own ruling coalition. He also added that the company’s geoscientists believe they could succeed at the Equatorial Margin. Ibama, the environmental protection body, earlier denied Petrobras' request to Drill at Amazon River due to discrepancies in environmental assessments. However, the oil giant has appealed the decision.
Zacks Rank & Key Picks
Currently, Petrobras carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy space are CVR Energy Inc. CVI, Evolution Petroleum Corporation EPM and Global Partners LP GLP. While CVI sports a Zacks Rank #1 (Strong Buy), both EPM and GLP carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CVR Energy is an independent refiner and marketer of high value transportation fuels. Headquartered in Sugar Land, TX, CVI has 1,470 employees. It is also engaged in nitrogen fertilizer manufacturing business through its interest in CVR Partners, LP.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2024 in the past 60 days.
Global Partners is a Delaware limited partnership, formed by affiliates of the Slifka family. The partnership owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. GLP is one of the largest wholesale distributors of distillates. It has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 30 days.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
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