Part 6/9:
The conversation transitions to an examination of Brazilian commodity giants Petrobras and Vale. Muckerman describes Petrobras’ historical trajectory, once a market darling now facing severe issues linked to corruption scandals, dubbed the “carwash scandal.” This extensive corruption investigation has hindered the company, which is state-owned and mired in mandates that complicate its operational profitability.
Despite these troubles, Petrobras still holds significant reserves, with 8.7 billion barrels of crude and notable natural gas quantities. Muckerman argues that the company's foundational issues stem from outdated government policies that impede its ability to operate efficiently.