e chang

Petrobras is Hoarding the World's Deep Sea Drillers

Good article. Right on.

Petroleo Brasileiro: Reality Begins to Bite

The Bloomberg article is good since it goes into the details. Just saying that it's hard to get the oil out, like your original article did, isn't very useful since everyone knows that already. The Saudi Khursaniyah field is also very hard to develop, as is Canadian oil sands, etc. With oil at over $100, they all become cost effective?

Having said that, your trade idea may not be bad. Perhaps It depends a little too much on the Fed not cutting rates?

I am a long-term long of PBR and already bought and sold several batches. I still hold buy first batch, bought at split-adjusted $19.32 (12/27/2004), and my last batch, bought at $99.14 (3/19/2008). Personally, I would rather buy the dips then try to short PBR.