Recent Media reports stated that the South American nation of Brazil discovered an appreciable amount of oil deposits within its territory. Estimated at between 5 to 8 billion barrels of crude petroleum and natural gas, this new find is important because it suggests that the peak petroleum supply hypothesis is not the last word yet. However, the reaction of the Brazilian president shows that its approach to this new find is typical of any developing nation that is lucky to discover viable deposits.
As this dated NYT piece by Alexei Barrionuevo confirms, the find has added a bounce to the gait of the Brazilian president and his comments suggest that besides the massive contribution to state revenues, petroleum will be an important factor in its foreign policy goals and public affairs in general. More interestingly, having been a victim of the use of energy fuels as a political weapon, President Lula has unequivocally stated that Brazil will join the OPEC. So much for solidarity among developing nations especially because it is such nations that are most affected by the cartel arrangement. It is commendable however that the commitment to alternative fuels has been retained. Discovery of the Tupi oil field should get Brazil thinking more like Norway and less like the members of that price fixing bunch known as OPEC.
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