Oil industry fears over Brazil's new president seen as overblown

The Oct. 27 landslide victory of Brazilian leftist presidential candidate Luiz Inacio Lula da Silva of the Workers Party (PT) over Sen. Jose´ Serra, the ruling party's candidate, at the outset was cause for concern for the oil and gas industry in Brazil. But some industry executives and consultants interviewed by OGJ suggest that the prospect of a left-wing government's impact upon Brazil's petroleum industry may not be as grim as some have warned. Issues of main concern for the Brazilian energy sector under a Lula government include its policies toward the prospect of price controls, simplification of the cumbersome tax structure, incentives for investments, upgrading the electricity sector, and Brazil's role as a key player on the volatile political and economic international scene.