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Petrobras As Policy Maker

Overview

Critics of Brazilian state-controlled oil company Petrobras argue that the company is used as an instrument of the government to the detriment of shareholders. This contention, while not entirely false, fails to recognize the extent of the company's influence over energy policy and the importance of its ability to set prices of oil and derivatives. The benefits that the company obtains from its de facto monopoly on downstream activities and from its near-monopoly in oil production...

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