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And no, I’m not talking about the weather, or the beautiful beaches, or even their national soccer team. Pretty soon, Brazil will be blazing for one more thing… oil. “Brazilian oil?” you say. Yes, Brazilian oil. Brazil is hot. Red-hot. Brazil’s oil production rose steadily in the last ten years and now sits at about 2.6 million bbl/day. It’s second among oil producing nations in South America, only lagging behind Venezuela. Venezuela has always been the South American powerhouse. The country contains 99 billion barrels in reserves, and is a part of the OPEC cartel. But their status as “top dog” might not last long... According to the 2009 BP statistical review of world Energy, Brazil’s production rose 3.6% the last year, while Venezuela’s declined by 1.9%. And for the first time, Brazil is expected to become a net exporter of oil this year. So are we looking at the new king of South American oil? If the trends continue, don’t be surprised… especially considering the fact that their oil industry has been making huge splashes in the headlines recently. I’m talking about more than just the shocking find of the massive Tupi pre-salt oil field in 2006. Since then, the headlines have piled-up with discoveries of more pre-salt fields including Carioca, Iara, and Guara. Today, the projected total extent of recoverable oil and natural gas reserves in the entire subsalt reserve exceeds 50 billion barrels of oil. This kind of action has the world taking notice. Petrobras, Brazil’s state owned oil company, produces most of the country’s oil. They’re also a superpower when it comes to oil reserves. Just take a look at the 2009 Platts Top Global Energy Company Rankings: 1. ExxonMobil 2. Chevron Corp 3. Royal Dutch Shell 4. BP 5. Total SA 6. Petrobras In one year, Petrobras jumped from 12th place to 6th place. That’s what I call heat. Adding more fuel to the flames is this: they’ve just discovered a substantial quantity of crude in deep Atlantic waters off the coast of Angola… for the second time in a week. If the hair on the back of your neck isn’t standing up right now, then I don’t know what else to tell you. Pretty soon Brazil won’t just be about the great weather, beaches, and soccer. They’re going to be a major supplier of oil to the world market. So if you’re searching for that next big payday, Brazil is a hot place to look. In an upcoming article I’ll identify a few companies worth looking at. So keep your eyes open for that. Yours in profits,
Roger Gaines |
