Drilling The Future

Energy: America’s energy crunch is sadly self-inflicted. While others around the world engage in a mad dash to find more oil reserves, the U.S. seems to think $111-a-barrel oil won’t be affected by more supply.

Aline from the recent film “There Will Be Blood” reminds us of the spirit this country’s original oil entrepreneurs once had. “There’s a whole ocean of oil beneath our feet,” bellows antihero Daniel Plainview. “No one can get at it except for me.”

Such sentiment these days is in short supply. But not overseas. Take Brazil’s Petroleo Brasileiro. On Monday, it announced that its Carioca offshore oil field may hold up to 33 billion barrels — more than the estimated official reserves in all the U.S.

This follows Brazil’s discovery last December of a huge new oil source, the Tupi field, also thought to hold billions of barrels. Haroldo Lima, head of Brazil’s National Oil Agency, estimates that Carioca might be as much as five times the size of Tupi.

Why the spate of discoveries off Brazil? Simple: With oil topping $100 a barrel, it’s now more economical to prospect for hard-to-get supplies, whether deep in the ocean or in remote regions of dry land. When prices soared, Brazil got busy.

This is happening around the world. As we reported in December, China last year made 10 major new energy discoveries in a bid to secure its energy future. India recently invited foreign companies to help it find more energy on its territory.

Investor’s Business Daily