New discovery of Oil Reserves in Brazil ?

Will these lower the price of oil in the US ?





# Story Highlights





# Petrobras president: Oil found would give Brazil the world's eighth largest reserves





# Petrobras: Tupi field has equivalent to 40 percent of all oil ever discovered in Brazil





# Brazil became a net oil exporter only last year





# Presidential chief of staff: Oil find will put Brazil on level of Venezuela, Arab nations





http://www.cnn.com/2007/WORLD/americas/1鈥?/a>New discovery of Oil Reserves in Brazil ?
I believe It will not lower oil prices for some reasons:





First, it is a very significant discover for Brazil, but it is not for the rest of the world. It is an 5 to 8 billion barrel reserve. Saudi Arabia has 260 billion alone.





Second, it is not an easy recoverable reserve. The oil is deep into the water and mud, and it will cost much money to recover it.





What is keeping oil prices high is the fact that demand is raising faster than production. Most of the cheaply recoverable oil reserves belong to OPEC, which is a strong cartel, and is controlling the prices freely. The rest of the oil depends intensively on investments to be recovered. But investments are not growing as fast as demand is.





Oil prices will keep high fore some time. But there are limits for how high the prices can get, for other sources become economically viable as the prices rise. As an example, you can gaseify coal or biomass and convert the gas into gasoline, if needed. The process is called Fischer-Tropsch.New discovery of Oil Reserves in Brazil ?
It's a shame that the environmentalist have blocked our drilling in Alaska,in the lower 48 and off shore. We could be less dependent on the Middle East The thing I don't understand is that they have no problem with China drilling in the Gulf but but will do every thing they can to stop us.
let's ';find'; our own oil. Independent from the world....
Why not accuse them of having WMD and of being terrorists and just go blow up their towns and citys murder and rape their people and just take it.