Brazil president’s push for natural gas raises intervention worries – Bloomberg (NYSE:PBR)

A push by Brazil President Luiz Inacio Lula da Silva for more and cheaper natural gas is generating concern that the government is turning to interventionist policies, which could discourage investments by oil majors including Petrobras (NYSE:PBR), Shell (SHEL) and Equinor (EQNR), Bloomberg reported Tuesday.

A newly published decree would allows Brazil’s ANP oil regulator to set the amount of natural gas that oil producers reinject into reservoirs, a “one-size-fits-all rule” that could “discourage investments and directly impact the volume of liquids produced in the country,” Andre Fagundes of Welligence Inc. told Bloomberg.