Why Brazilian Towns Awash With Royalties From Oil Are Still Among Poorest

"Though 60 miles (100km) apart, the Brazilian municipalities of Presidente Kennedy in Espírito Santo state and Campos dos Goytacazes in Rio de Janeiro state have one big thing in common: oil. Since late in the last century, their public funds have been bolstered by billions in royalties from oil finds in the offshore Campos Basin.

Yet despite having significantly more resources than other towns and cities in Brazil, both still face problems such as poor sanitation and healthcare, inadequate social housing and state education as well as corruption scandals.

The Brazilian government’s resolve to continue to explore for oil—in June, it announced it would auction a series of oil and gas exploration blocks, including 19 of 47 areas near the mouth of the Amazon River—echoes a decades-old Brazilian promise that oil exploration would benefit its people, despite evidence that it has not always resulted in gains for much of the population.

Analysis based on Candido Mendes University (Ucam)’s InfoRoyalties, a database of Brazilian oil revenues, reveals that most of the 15 municipalities with the highest oil revenues per capita between 1999 and 2024 have mediocre social and economic indicators, often ranking among the worst in their regions."

Rafael Oliveira reports for Agência Pública and the Guardian August 8, 2025.

 

Source: Agência Pública, 08/11/2025