New Find Fuels Speculation Brazil Will Be a Power in Oil
Posted by ecoshift on May 23, 2008
By JOHN LYONS and DAVID LUHNOW
May 23, 2008
A flurry of activity by emerging oil giant Petróleo Brasileiro SA is heating up speculation that Brazil may have enough deep-water oil to propel it into the big leagues of global oil exporters and ease pressure on soaring oil prices.
Petrobras, as the state-controlled company is known, announced its latest discovery late Wednesday, saying it struck oil some 155 miles off the coast of São Paulo state. The new field is close to the company’s massive Tupi field, which was discovered two years ago and remains the world’s largest find since 2000 and the biggest in the Western Hemisphere since 1976. Petrobras wouldn’t say how much oil the new field might hold.
The find is the latest in a string of successful oil strikes by the company, raising hopes that Brazil will be the next big thing in global oil.
With oil prices setting new highs, big discoveries in Brazil would boost the energy industry’s optimism that it could deliver enough oil to keep pace with fast-growing demand. In trading Thursday on the New York Mercantile Exchange, oil price fell $2.36, or 1.8%, to $130.81 a barrel, partly on the prospect of more supply flowing from Brazil.
Major finds in Brazil would be especially welcomed in the U.S., providing a new source of oil from its own hemisphere…