JREwing

Petroleo Brasileiro: Reality Begins to Bite

Well, no pun intended, by 2011 when Tupi is supposed to get online, oil will easily cost more than 300$, unless we get hit by a meteor the size of canada. 300+$ oil solves a lot of 'technical' problems. Considering the progress, oil exploration technology has made in the last couple of years, there is no doubt in my mind, that that oil will see the sunlight.

But considering, that Brazil has price controls for petroleum products in place - pansy poetry socialist government it has - i will not go long PBR. Until Brazilians pay market price, there is no demand destruction taking place, and PBR will never get to be an exporter, but an importer like in March, when they had to import 660 000 barrels.