Brazil’s President Luiz Inácio Lula da Silva

Brazil Expresses Interest in OPEC Membership

May 12, 2008 06:03 PM
by findingDulcinea Staff
Brazilian President Luiz Inácio Lula da Silva wants his country to join OPEC, an action he says could help lower worldwide petroleum prices.

30-Second Summary

Brazil recently made a substantial oil discovery and is working toward becoming a large oil exporter around 2010.

The country’s newly-discovered Carioca field could hold up to 33 billion barrels of petroleum, but this number has drawn skepticism from some industry experts.

Regardless, Brazilian President Luiz Inácio Lula da Silva seems confident in his country’s assets, and said Brazil is thinking about joining OPEC, a move that might help lower petroleum prices.

Brazil has other resources it wants to share with the world, too. The country is a leader in biofuel production, and aims to produce enough ethanol to meet all of its energy needs by 2025 and have enough left over to fuel 5 percent of the world.

Despite the fact that other countries, including the United States, are also producing large amounts of biofuel, da Silva says production “can be better done by us and the Africans.” Brazil uses a different process to make biofuel than the United States and Europe.

Worldwide, fuel costs and production levels remain a considerable issue. Some countries are looking for additional reserves and instituting new biofuel laws. Talk of peak oil has others wondering how to conserve the energy they have.

OPEC recently denied requests by the United States to boost production, saying the market had sufficient supplies.

Headline Link: Brazil looking at OPEC membership

Background: Brazil’s energy resources

Oil and gas

Related Topics: Oil and gas prices, peak oil and biofuels

Oil and gas prices
Peak oil

Reference: OPEC, Biofuels


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