Saturday, April 22, 2006


Brazil reaches self sufficiency in petroleum

Petrobras productionYesterday, April 21stst, President Lula turned the key which started out P-50, the largest Brazilian petroleum platform.
Brazil is now producing 1.8 million barrels a day, the samem volume consumed; by the end of the year, forecast is that Brazil will be producing 1.9 million barrels/day.
Today, 80% of the production comes from off-shore wells, and, of these wells, 90% are located in the Campos basin, off the coast of Rio de Janeiro.
President Lula celebrated the event by putting his hands on oil and stamping a Petrobras uniform; he repeated the gesture of President Getulio Vargas in 1953, when Petrobras producing their first barrels.

Petrobras was created in 1953. In 1995, the company lost the Constitutional monopoly; however, because of its large assets (Petrobras retained the budget, staff, wells and knowledge), no other company can face Petrobras in Brazil.

Self sufficiency is important, even more at these times of uncertainty (USA and Iran are currently having hard talks over Iran's intention to produce nuclear weapons), when the oil prices increase (this week, price reaches over US$70 for the first time ever).
Brazil is still paying the price of the first and second petroleum shocks, in the late 1970s and early 1980s; the country depended heavily on imported oil by then, and saw its foreigner debt increase very rapidly.

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