Reuters is reporting that Brazil stands to benefit from the BP oil spill catastrophe as the US moratorium makes more rigs available for other countries.
Even as an ecological catastrophe makes the future of U.S. offshore drilling less certain, Brazil is plowing ahead with a $220 billion five-year plan to tap oil fields even deeper than BP’s (BP.L) ill-fated Gulf well, which is still leaking crude.
It’s estimated that thirty five rigs are now sitting idle in the Gulf of Mexico. Brazil is already getting inquiries from companies wanting to move their rigs there. Brazil’s state oil company, Petrobras already produces about a fourth of the world’s deep water oil.
Analysts say oil companies operating in the Gulf of Mexico—most notably BP and Chevron (CVX.N)—may have to decide between paying standby fees while the rigs are idle, moving them to other projects, or canceling the contracts.
The U.S. moratorium may last longer than six months because of U.S. sentiment against offshore drilling and plans for an overhaul of safety standards.
The shortage of rigs could help Brazil become a major oil exporter.
What an amazing stroke of good fortune for Obama’s boss, unrepentant Nazi collaborator, George Soros!
Soros is also invested in offshore oil drilling in Brazil, assisted by the American taxpayers.
Newsmax:
The Wall Street Journal reports: ‘The United States, through the U.S. Export-Import Bank, has issued a ‘preliminary commitment’ of $2 billion and more if needed’ to Petroleo Brasileiro SA, a Brazilian government-owned oil exploration and development corporation known as ‘Petrobras.’
Soros Fund Management, LLC holds a stake in Petrobras of approximately $900 million as of December 31, 2009.
George Soros’ principal investments are in oil; one in particular is Petrobras, the Brazilian-owned company. This happens to be the largest investment in the Soros portfolio at the present time.
Now that word is out that the facilities of the U.S. Export-Import Bank SA is offering guarantees for loans to Brazil’s state-owned oil company Petrobras, U.S. citizens are beginning to complain.
Soros also owns quite a lot of real estate in Brazil. Soros’ Adecoagro, which invests in renewable energy, owns or leases about 840,000 acres of farmland in Argentina, Brazil and Uruguay growing coffee, soybeans and other commodities. Royal Dutch Shell Plc and Bunge Ltd. Are also expanding into ethanol in Brazil.
When you get to boss the president around, you never have to let a good crisis go to waste.
