The Rising Influence of Rising Affluence

[DewDiligence]

Oliveira filed criminal charges against Chevron, Transocean and 17 of their employees in Brazil this week for alleged crimes related to a November offshore oil spill in Brazil's Frade field, which Chevron operates. He pledged to seek maximum prison sentences of 31 years against the firms' executives.

Enough said—the Campos prosecutor is obviously a grandstander. No wonder the federal Judge is considering moving the case to Rio. From the same article:

Some Brazilian officials, including Senator Jorge Viana of the government's ruling party, have called Oliveira's charges over-aggressive. Viana told Reuters this week that the case could damage Brazil's oil industry.

No kidding. The bottom line is that Brazil needs companies like Chevron to invest in pre-salt development projects more than Chevron needs Brazil. In due course (IMO), this case will be de-criminalized, Chevron will quietly replace the executives in question, and business will continue. (Chevron has already paid substantial fines.)