ARKANSAS, Dec 03 (Future Headlines)- Brazilian President Luiz Inacio Lula da Silva expressed on Saturday that Brazil’s potential participation in the OPEC+ group is aimed at persuading oil-producing nations to shift away from fossil fuels. Speaking at the COP28 climate conference in Dubai, Lula emphasized the importance of convincing oil-producing countries to prepare for the eventual end of fossil fuels. He stressed the need for reinvesting oil revenues into clean and renewable energy, particularly highlighting the importance of green hydrogen for continents like Africa and Latin America.

Lula’s statement comes after Brazil indicated its readiness to join OPEC+, a coalition of 23 oil-producing nations. Brazil, as the largest oil producer in South America, produces approximately 4.6 million barrels per day of oil and gas, with 3.7 million barrels per day being crude oil. The move to potentially join OPEC+ has sparked discussions due to Brazil’s status as a market economy, with state-run oil company Petrobras listed on the stock exchange.

Following Lula’s comments, Brazil’s Mines and Energy Minister, Alexandre Silveira, reinforced the commitment to leveraging oil revenues for financing clean and renewable energy. He stated that under President Lula’s leadership, Brazil aims to lead oil-producing nations in accelerating the energy transition.

The potential participation of Brazil in OPEC+ has raised eyebrows, given the historical role of OPEC in coordinating oil production cuts among its members. Brazil’s stance as a market-driven economy and the presence of publicly traded oil companies, such as Petrobras, introduce complexities to its potential involvement. However, it appears that Brazil does not intend to cap its oil output, according to sources cited in a Reuters report.

In summary, Brazil’s contemplation of joining OPEC+ reflects a strategic move to influence oil-producing nations toward embracing renewable energy and preparing for a future beyond fossil fuels. President Lula and his administration emphasize the commitment to utilizing oil revenues to finance the transition to clean and sustainable energy sources, with a particular focus on green hydrogen.”

Reporting by Emad Martin