With gasoline prices at $3.68/gallon it seems hard to believe that they could ever go back down. It seems that our only hope is alternative fuels, or is it?
A few weeks ago news broke about huge oil reserves that were found off the coast of Brazil. Additonal research as to their size has led to some interesting conclusions. Here are a few excerpts from a fascinating article found on Bloomberg.com:
By Joe Carroll
April 24 (Bloomberg) -- Brazil's discoveries of what may be two of the world's three biggest oil finds in the past 30 years could help end the Western Hemisphere's reliance on Middle East crude, Strategic Forecasting Inc. said. Saudi Arabia's influence as the biggest oil exporter would wane if the fields are as big as advertised, and China and India would become dominant buyers of Persian Gulf oil, said Peter Zeihan, vice president of analysis at Strategic Forecasting in Austin, Texas.
Commenting on two particularly large oil fields the author says...
Tupi and Carioca
Brazil's state-controlled Petroleo Brasileiro SA in November said the offshore Tupi field may hold 8 billion barrels of recoverable crude. Among discoveries in the past 30 years, only the 15-billion-barrel Kashagan field in Kazakhstan is larger.
Haroldo Lima, director of the country's oil agency, last week said another subsea field, Carioca, may have 33 billion barrels of oil. That would be the third biggest field in history, behind only the Ghawar field in Saudi Arabia and Burgan in Kuwait.
The article ends with this comment:
More discoveries will follow in Brazil's offshore basins, most of which have yet to be opened to exploration, Zeihan said. Repsol YPF SA, Exxon Mobil Corp. and Devon Energy Corp. are among the producers scouring Brazil's waters for reserves.
``The finds they've got so far are just the tip of the iceberg,'' Zeihan said. ``Brazil is going to change the balance of the global oil markets, and Petrobras will become a geopolitical supermajor.''
With oil at $120/barrel investors will be lining up to tap into these offshore fields. No doubt Brazil has an interest in seeing these fields developed too. While it will still take years for this oil to reach the marketplace it seems obvious that we won't be running out of it anytime soon. Read the rest here:
Bloomberg.com: Latin America