Increased production capacity 'makes Brazil top for oil investment'
Date added: 13th November, 2008 at 09:03 (view all articles from November, 2008)
Categories: Natural Resources
The ability for a company to increase its level of production is one of the key things to look out for when deciding where to make an oil investment, an expert has suggested.
Brian Hicks of Global Investors Global Resources Fund was quoted by Marketwatch as implying this is among the chief reasons why his organisation owns commodities in Brazil and other oil producers in South America.
Explaining why production capacity is so important, he commented: "We think [supplies of oil] will remain tight. And so we gravitate towards companies that can grow production and have deep drilling inventories."
Referring to Brazil's largest oil producer, he added: "Petrobras definitely fits the bill."
Between 50 and 80 billion barrels worth of oil lies in the recently discovered pre-salt layer fields off Brazil's coast, Haroldo Lima of the National Petroleum Agency reiterated this week.
It will cost approximately $400 billion (£267.6 billion) to exploit the Santos Basin reserves, he claimed.
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