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By Robert Rapier on Nov 9, 2007 with no responses

Brazil’s New Oil Discovery

You may have seen in the news that Brazil has made a new oil discovery. It is always hard to judge how much is hyperbole, but they are excited about it:

Offshore oil discovery could make Brazil major petroleum exporter

RIO DE JANEIRO, Brazil: A huge offshore oil discovery could raise Brazil’s petroleum reserves by a whopping 40 percent and boost this country into the ranks of the world’s major exporters, officials said.

The government-run oil company Petroleo Brasileiro SA, or Petrobras, said the new “ultra-deep” Tupi field could hold as much as 8 billion barrels of recoverable light crude, sending Petrobras shares soaring and prompting predictions that Brazil could join the world’s “top 10″ oil producers.

“Brazil’s reserves will lie somewhere between those of Nigeria and those of Venezuela,” Gabrielli said at a news conference.

Petrobras says the Tupi field, off Brazil’s southeastern Atlantic coast, has between 5 billion and 8 billion barrels — equivalent to 40 percent of all the oil ever discovered in Brazil.

Brazil is a country very well-positioned for worldwide energy shortages. They don’t use much oil, they have lots of oil, and they are efficient producers of ethanol.