With as much as 12 billion barrels of recoverable oil in the pre-salt fields of Brazil, Petrobras is about to add a hefty amount of oil to its reserves. As the national oil company of Brazil, it has a government mandated 30% working interest in every well that will be drilled in this new region. This increase in reserves and production could come as a big relief for a company that for years has taken major losses in its refining business because of the high costs of oil imports and the artificially low gas prices that the government mandates.
But getting at the new reserves will not be easy. These offshore fields present some of the most technically challenging drilling environments out there today, and Petrobras could end up spending a lot of money without anything to show for it if the company isn't careful about its exploration program. Tune in to the video below where Fool.com contributor Tyler Crowe takes a look at what Petrobras needs to do to make this new oil field work, and highlights what companies would be in the best position to make that happen.
Drilling for oil in these high-risk areas is only possible because the price of oil is high enough to make it economically feasible. The price of oil can be a major determinant on how energy companies will set their plans. So to help you better understand this dynamic, we have uncovered three companies that are best suited for this high oil environment in out special report called "3 Stocks for $100 Oil". Simply click here to get a free copy of this valuable information.
The article Can Brazil Finally Realize Its Energy Dream? originally appeared on Fool.com.
Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool. The Motley Fool recommends Chevron, Petroleo Brasileiro S.A. (ADR), and Seadrill. The Motley Fool owns shares of Seadrill. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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