Brazil's STJ to rule on legality of fracking

The Superior Tribunal de Justiça (STJ) has scheduled a trial for September 9 to decide on the legality of hydraulic fracturing, or fracking, for oil and gas production in Brazil. The case, which has been under judicial dispute for over a decade and at the STJ since 2021, could result in a total prohibition, a permission, or the establishment of specific conditions for the activity.

The legal battle pits the Federal Public Prosecutor's Office (MPF), which cites environmental risks and the precautionary principle, against Petrobras and the National Agency of Petroleum, Natural Gas and Biofuels (ANP), who advocate for the technology. The decision is seen as a critical factor for legal certainty in the country's oil and gas sector.

Opinions within the Brazilian government remain divided. The Ministry of Mines and Energy supports the exploration of unconventional shale oil, while the Ministry of Environment opposes it, citing potential health and environmental risks. Industry representatives, such as the Brazilian Petroleum Institute (IBP), argue that the technology is safe and well-mastered, noting that competitors like Argentina and the United States utilize it extensively.