First Road-kill for NA Energy/Crude Boom???
Here are three recent articles on Petrobras projecting different views on the company – one highlights oil production doubling in size to 311 kbpd and reaching 192MM BBL cumulative to date. Another one continues project its long-range projections to double by 2020 building on investments of $42.9B at growth rate 21.5% since 2000 as of 2012. The two of these may be what HAS happened and what might reoccur on long range basis.
But the third article more accurately shows what is going happen in the near/short term to Petrobas position. It shows that Petrobras has lost its swagger even as it struggles to regain hopes in spite of radically changed oil market. The new US bonanza of Shale Crude pushing back imports as well as past rising levels of gasoline imports is bringing the energy shock home to Brazil. Even once modeled Ethanol industry has been forced to import ethanol from US one of its primary consumers. And its growth has slowed to 7.5% and as now to 1% in 2012 to be eclipsed by other LA oil countires Mexico & Peru!
Brazil has failed to respond to US redrawing the Global energy map and as article states Brazil’s euphoria has turned to inertia.