With the huge deposits of oil deposits found in Brazil, it is also set to become a part of the oil boom which had earlier led to the rise of Gulf States. The new estimates have put the oil deposits to be as much as 50,000 million barrels, which is 2.5 times more than the previous estimates of 20,000 million barrels. This new find is being considered as a bubble in the Brazilian economy.
The discovery of vast oil reserves is going to play a major role in the growth of Brazil as a super power in the coming decade. Currently it is the largest country in South America, a part of BRIC nations. Brazil has been a net exporter of goods with trade surplus on year to year basis. The presence of huge oil deposit in Brazil will also reduce the dependency of the United States on Gulf countries as it seeks to source oil from South and North American countries.
The costs of exploration for oil in Brazil will be more compared to the other places like the North sea and Gulf of Mexico as the depth of the reserves is around 7000 km below the sea level, which is deeper than any other place.Social tagging: Brazil > Oil Boom