BobbyBahiaBrazil

Brazil and Petrobras Are Awash in New Oil

Petrobras is decades old mainly government owned near monopoly in Brazil. I am in Brazil at this momment. A few days ago there was a write up in the "Folha of Sao Paulo," about the expensive, dirty and usually adulterated gas sold in Brazil. Esso left the country selling its gas staions because it could not control distributors and stop them from adulterating product.
Gas prices are 6-7 dollars a gallon, more than half the stations sell adulterated product, and gas is dirty less refined product.
Dilma, who is Lula's hand picked successor is also part of the "the pre-salt is ours," propaganda and they have been talking about a new state-owned company to mangae the oilfields and collect royalties to be paid in barrels of oil. Number as high as 50% have been floated.
Given the fact that this decades old company is facing huge risk with regards to the cost of extraction and the fact that it pays a dividend yield of next to nothing (That shows you the government doesn't care about shareholders) The govet owns about 40%/

Be careful here. The papers say we won't have any legislation untill after Feb of next year because the Congress in on vacation.

When Lula leaves the next Gov't could be much worse.