Scott Benson

Petrobras Looks More Compelling Than Ever

If Venezuela continues to make overtures towards cutting off oil to the U.S. (to send to the damn Chinese), Brazil may just have a place to sell it. :) We'd need to replace 1 mbpd that we'd normally get from Venezuela then. But today, very little Brazilian oil comes to the U.S., and since Brazil is a huge country and is set to become a global superpower, and its birthrate is healthy, and since everything is so far apart in Brazil, don't be too surprised if Brazil needs all their oil to push all their diesel equipment. Everyone thinks Brazil moves on sugarcane ethanol. It doesn't (ethanol is 20% of transportation fuel at best). It uses and needs diesel.

Petrobras Looks More Compelling Than Ever

Not to mention it is going to be incredibly expensive (moreso even than you said) to get the Tupi/Carioca oil out, if you even can get it out.

Petrobras Looks More Compelling Than Ever

Um, Chavez is in Venezuela, not Brazil. Two different countries. Plus, even if Chavez nationalizes more of HIS stuff, his country is an inflation nightmare, with shortages of all the important materials. His model for the future cannot stand. And if you were referring to some kind of "Brazilian Chavez" angle, I'd say it won't work long term.

The 'Peak Oil' Myth: New Oil Is Plentiful

You don't understand peak oil, dude. Nobody says we are running out of oil. Peak oil says we may be running out of CHEAP oil, on which our modern world economies depend. Every alternative you list, from the Brazil Tupi and Carioca fields (indeed impressive amounts, maybe, but very deep in the earth) to the oil shale nonsense, are going to be HUGELY expensive to produce. There is lots of oil for people who can afford it. But few people seem to acknowledge that most of the world isn't all that rich. Do your research, my man.