Brazilian Oil Find Might End US Nightmare
Apr 24, 2008 General
Brazil has made a huge discovery of oil and if the initial estimates on quantity hold true, the US might finally be able to reduce or eliminate dependence on oil from the Middle East. The find, some 8 billion barrels would be one of the largest and pales in comparison to another discovery in the region that could yield 33 billion barrels.
There is no indication as to how long it would take to start pumping the oil but there are estimates that by 2020 several million barrels a day could be flowing. This is great news and the US needs to ensure a partnership with Brazil so that we can become a primary customer for their oil. Since our politicians are keeping us from drilling for our own it will be important to work with Brazil to ensure we can buy theirs.
This would strike a blow to the Middle East in that they would then have to rely on China and India as customers which would provide them plenty of cash flow but the US could then reduce the number of warships patrolling the Gulf and keeping the oil flowing. It is possible that the Middle East could become extremely unstable without a US presence.
I am hoping that Brazil is able to get this oil to market quickly. Perhaps we could even get reasonable prices for the oil they provide. This would be a major boost to our economy and would help the economy of Brazil as well.
It is amazing as well, that we keep finding huge deposits of oil when the naysayers keep telling us it is running out. These people are, of course, the same ones that refuse to allow us to drill on our own property for oil or to build new refineries.
Maybe all this will change when they can no longer use dependence on Middle Eastern oil as a reason for decreasing fossil fuel use.
Source:
Bloomberg
Tags: brazil, middle east, oil