All the new oil reserves are located alongside the existing oil fields in the eastern coast of Brazil. The Brazilian state owned oil company, Petrobras is expected to invest more than $200 billion for deep sea oil exploration by the end of 2015. The company is considering the option of selling shares consistently to the government and trading for its current funding.
The industrial investments in Brazil are growing day by day, and more than 60% of it is in oil sector thus increasing the requirement of skilled labor which happens to be short in supply creating a labor blackout. With the planned investment, Petrobras believes that it can become larger than shell petroleum within a period of 10 years. Brazil does not permit any private players to operate in the petroleum sector, though there are many players focusing on manufacture of drilling equipments required for deep sea drilling.
If the current estimate holds good then Brazil will be the fifth largest oil exporter in the world by the end of next decade contributing to about 10 percent of the total oil production in the world and will be the major supplier to the United States.Social tagging: Brazil > Petrobras