Attention to future supply

04/21/2008
Reports of major oil discoveries get quick attention from the general media these days, even when the discoveries aren’t really news or, for that matter, discoveries. While the attention can be misleading, it shows welcome recognition that new quantities of hydrocarbons are important, especially when large. Yet some governments miss the message.Remarks by a Brazilian official last week showed how eager the world seems to be for word of the next proverbial elephant. Haroldo Lima, general director of the National Oil, Natural Gas, and Biofuels Agency, told reporters Petrobras may have found “reserves” of 33 billion bbl in deep water off Rio de Janeiro. The price of Petrobr...

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