Earth Equity News

Brazil Becoming an Oil Powerhouse. By Bradley Brooks, AP, August 23, 2009. "Brazil, long proud of its push to develop renewable energy and wean itself off oil, has a bad case of fossil-fuel fever... Since the national oil company Petroleo Brasileiro SA, or Petrobras, discovered the massive Tupi field off the coast of Rio de Janeiro two years ago -- estimated to hold 5 to 8 billion barrels -- it is the development of oil fields that has gone into overdrive. Thirty years ago, more than 85% of Brazil's oil came from foreign sources. Today, it is a net exporter. There have been a series of other discoveries since Tupi -- each lying at least 115 miles (185 kilometers) offshore, more than a mile below the ocean's surface and under another 2.5 miles (4 kilometers) of earth and salt. Estimates of the entire area's recoverable oil range between 50 billion and 100 billion barrels. Brazilian President Luiz Inacio Lula da Silva hailed the finds as the nation's future, a second declaration of independence and an economic savior for 57 million Brazilians living in poverty -- 30% of the population. The military wants new submarines and jets to protect the crude. Leftist groups want it all nationalized. The enthusiasm is also fanned by Brazil's devotion to Petrobras, routinely listed as one of the most-admired companies in national polls. Founded in 1953 to fend off an economic crisis and dependency on foreign oil, Petrobras has long embodied Brazilian nationalism and the notion of shielding domestic wealth from foreigners -- particularly the United States and Europe. In 2008, Brazil's total oil and natural gas production was nearly 2.3 million barrels per day. Petrobras was responsible for more than 96% of it."