UncleFred

Petroleo Brasileiro Riding Discovery To New Highs

The other problem to be aware of is that the Tupi oil discovery is in very deep water, and even then deep under ground. It is at the very limits of current technology to recover this oil.

On the plus side, IF the oil can be recovered in such a way as to make economic sense (which means oil prices would need to remain very high and recovery costs would need to be contained) the reserve is huge, and the potential profits are huge.

I am betting that despite the enormous short term volatility in the oil markets, long term, prices are going to remain high, as demand is increasing and supply is diminishing. I am long on Petrobras.