The regulation of pre-salt and its economic fundamentals

• Grant number: 10/07795-0
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: August 01, 2010
• End date: July 31, 2011
• Field of knowledge: Applied Social Sciences - Economics - Agrarian and Natural Resource Economics
• Principal Investigator: Fernando Antonio Slaibe Postali
• Grantee: Arthur Augusto Viaro
• Host Institution: Faculdade de Economia, Administração e Contabilidade (FEA). Universidade de São Paulo (USP). São Paulo , SP, Brazil

Abstract

The advent of pre-salt brought proposals for changes in the regulatory framework of oil sector in Brazil. This research aims at comparing the Lease System - currently in force - with the model proposed by the federal government to regulate pre-salt, ie, the Oil Share system. In other words, we search to answer the following question: what is the economic rationality of regulatory regimes in question (lease x share) and the implications (pros and cons) of the proposed changes? That is, what is the economic justification for a regime change? As specific objectives, we search to: a) analyze the economic and legal aspects involved in Share contracts, b) assessing potential consequences in terms of investment and appropriation of rents, compared to the current regulatory framework, c) study the economic rationality of the proposed social fund resources for the pre-salt.