Energy & OilEnergy & Oil
In spite of the smiles and pictures the Buenos Aires presidential summit of leaders from Argentina, Brazil and Bolivia could not agree on a way out to the energy and distribution situation that threatens the three countries this coming winter and apparently could only be solved in the mid term.
In a declaration spanning energy, transport and space satellite cooperation, Cristina Fernández de Kirchner and visiting Luiz Inácio Lula da Silva of Brazil, instructed their governments to begin negotiations over the next 120 days toward creating the binational commission.
Argentina may apply pressure on local units of Brazil's government owned Petrobras in a battle to increase its share of Bolivian natural gas supplies and ease potential wintertime shortages, reported on Thursday Buenos Aires daily, Clarin.
The surge in oil prices this week to over 100 US dollars a barrel is part of a trend of higher oil prices driven largely by sustained growth in demand that is likely to have little effect on global growth, according to an International Monetary Fund spokesperson.
Brazil at the end of 2007 had 12.623 billion barrels in proven oil reserves, the National Petroleum Agency, ANP, said on its Web site this week. Brazil also had 364.99 billion cubic meters of natural gas reserves.
Venezuela agreed on Tuesday to compensate Eni of Italy 700 million US dollars in cash for the takeover of an oil field but warned that Exxon Mobil Corp nationalized assets are worth less than a billion US dollars, far below what the US company is seeking.
Uruguay's energy situation is delicate, but not critical, however demand is higher than estimated and water reserves although sufficient are not being replenished as would be desirable admitted the country's head of the government owned electricity corporation.
Brazilian President Luiz Inacio Lula da Silva said the computers and hard drives stolen from the state oil company Petrobras last month contained information considered a state secret.
Brazil reiterated it does not have the capacity to give up a percentage of the contracted Bolivian gas provision thus helping to improve the Argentine energy situation.
Prospects identified from 850 square kilometers of 3D seismic in the North Falkland basin (South Atlantic) could contain 1.9 billion barrels of un-risked recoverable oil, estimated directors of Rockhopper Exploration PLC.