August 12, 2008

Sound energy policy must include more exploration, more conservation and more alternative fuels.  Just as wiser energy use and the pursuit of alternative fuels must be part of our future, so to must more exploration and drilling.

Take Brazil, for instance.  Brazil is often touted as the flagship country for alternative transportation fuels among the anti-oil crowd.  It is the world's second largest producer of ethanol and the world's largest exporter.  It has invested three decades in the production of ethanol and by using cheap sugar cane, Brazil has found a feedstock with a very competitive price and high-energy efficiency without the problems associated with corn-based ethanol.  The Brazilian ethanol program provided nearly one million jobs in 2007, and has dramatically cut oil imports.  What’s more, light duty vehicles in Brazil no longer run on gasoline.

But what is often lost in the Brazilian energy story is that oil remains an important part of the Brazilian energy strategy.  Brazil has an aggressive oil exploration and drilling program.  Brazil’s Petroleo Brasilerio -- “Petrobras” -- for short, is one of the largest oil companies in the world.  It controls more oil reserves than any American oil company, including Exxon Mobil.  

Last week, Petrobras announced a new oil discovery with estimated recoverable reserves between 5 and 8 billion barrels.  It is one of the world's biggest oil discoveries in the past 20 years.  And they aren’t through.  Petrobras is committed to looking for even more oil.

By the way, where have the Brazilians turned for assistance?  The answer -- the Bureau of Economic Geology at the University of Texas where there are a handful of Brazilian geologists and petroleum engineers honing their skills in how to find more Brazilian oil off the shores of Rio de Janeiro and elsewhere.  Maybe we should take a page out of the Brazilians playbook and get the BEG to help America explore and responsibly drill for more American oil (and gas).

Subscribe via RSS »