Archive for October 10th, 2008

Pixdaus, God Gave Us Pics!)

(Credit: Pixdaus, God Gave Us Pics!)

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Photograph of an offshore oil platform. Generally, oil platforms are located on the continental shelf. As technology improves and crude oil prices increase, drilling and production in deeper waters will become both feasible and profitable. Brazil is betting in this technology for its future development.

Brazil recently received a gift from God. They have found an abundant deposit of oil within its coastal waters that could supply them with oil for the next 100 years.

Four miles under the ocean’s surface off Brazil’s lush coast lie billions of barrels of recently discovered light crude—a treasure that could transform the country into an oil superpower.

The nine fields discovered in the last year are thought to hold 50 billion to 80 billion barrels of light crude—more than four times Brazil’s current reserves. With the find, Brazil could supply all of its own needs for nearly a century or become one of the world’s top oil exporters.

If oil hovers around $100 a barrel, the Brazil’s oil fields would yield at least $5 trillion, doubling the oil sector’s share of Brazil’s economy to 20 percent, according to Christopher Garman, head of Latin America research for the New York-based Eurasia Group consulting firm. It would also triple currency reserves to $600 billion, the president of Brazil’s central bank said.

If Brazil were to become a major oil exporter, it would ease the the current political tensions between the United States and Venezuela. On several occasions Hugo Chavez, the President of Venezuela, has threatened to stop oil shipments to the United States using oil as a political weapon.

Another country that has used oil as a political weapon is Iran. Iran’s President, Mahmoud Ahmadinejad, is a critic of the Bush Administration and supports strengthened relations with Russia, Venezuela, Syria and the Persian Gulf states. All of these countries, except Syria, have used oil as a political weapon against Western countries.

Brazil could also be a gift from God to many Western countries who have been blackmailed by Middle Eastern oil producing countries. As a clear example; it was recently in the news, that Libya has banned all oil shipments to Switzerland and barred Swiss ships from its ports to protest the arrest of Moammar Gadhafi’s son in Geneva. Libya is using oil to settle personal differences between Gadhafi, the Strongman of Libya, and Swiss authorities. Good Day.

Source: Brazil poised to become oil superpower – Newsvine.com

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