Brazil Oil Company Cuts Gas Supply

According to cnbc.com:

RIO DE JANERIO, Brazil – A state court ordered on Wednesday ordered Brazil’s state-run oil company Petroleo Brasileiro SA to resume natural gas supplies, a day after the firm began reducing gas flows to distributors and industries.

Petrobras said it reduced the gas flows in the country’s two largest cities to meet a rising demand by thermoelectric power plants that had been ordered online in response to a recent drought.

Although the reservoir levels aren’t critical, regulators said they wanted to spare some of the dams’ capacity to avoid possible future bottlenecks.

But the court said in a statement a reduction in the gas supply would “harm the entire economy” and cause “an unprecedented collapse of urban order.

The court decision does not affect gas supplies to Sao Paulo, Brazil’s largest city and the countries industrial and financial center.

The gas shortage was readily apparent in Rio de Janeiro, where a good portion of the taxi cab fleet runs on natural gas. Local newspapers showed pictures of drivers pushing their cabs from station to station in search of fuel.

The reduction in the gas supply also reportedly affected a number of industries in Rio de Janeiro state.

- I guess the reliance on natural gas seems similar to Oil…Natural Gas may not be the answer to Oil after all.

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