Brazil and Mexico are planning to increase the number of oil and gas jobs allocated to domestic companies. Like most protectionist schemes, the unintended consequences on employment, production and revenue outweigh the intended ones.
In Brazil, with a massive new offshore oil discovery, President Luiz Inacio “Lula” da Silva is proposing to award some exploration and production rights to Petrobras, the state-owned but publicly-trading oil group, without options for foreign firms.
