Integration of the region in the global economy being key to that vision, Chavez Moran notes this Wall Street Journal article about a new energy future for Latin America: RIO DE JANEIRO (Dow Jones)--Brazil's emergence as a hot frontier for oil and natural gas was boosted Wednesday by two fresh discoveries, with exploration and development of the country's newfound oil wealth likely to attract billions in investments over the next decade.
Latin America's largest country is squarely in the cross hairs of the global oil industry, with Brazil's stable democracy and robust economic growth making it especially attractive...
Brazil is betting heavily on development of its offshore fields, with former President Luiz Inacio Lula da Silva--the predecessor and mentor to current head of state Dilma Rousseff--saying oil could transform the country by easing the crushing poverty afflicting many of its citizens. The area known as the pre-salt, where oil was found more than 4 miles below the ocean surface, could hold between 50 billion and 100 billion barrels of oil and make Brazil the world's fourth-largest crude producer and a top-10 exporter...
The latest discovery builds on a string of high-profile finds that started in 2007, when Brazil announced the first pre-salt oil field. The Tupi field, now in pilot production after being renamed Lula, was the largest discovery in the Western Hemisphere since Mexico's Cantarell in 1976. Lula alone is estimated to hold 6.5 billion barrels of recoverable oil...
Despite the technical challenges that make pumping oil from the ocean depths expensive and complicated, the Ernst & Young Terco-Getulio Vargas study said that oil exports could reach 600,000 barrels a day by 2020 and generate $27.9 billion in revenue. That's nearly double the $16.1 billion in oil-export revenue Brazil earned in 2010.
Related posts: Daniel Chavez Moran on economic news and Daniel Chavez Moran on globalization and Latin America.
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