Monday, August 31, 2009

What to do with more oil money in Brazil

After the America's biggest oil discovery in over 30 years, Brazil's President promises to put the money to good works. A discovery of oil just off of Brazil's coast could contain over 150 billion barrels.

From this article from the Guardian, Tom Phillips gives us the details on Brazil's hopes for the money.

Brazilian president Luiz Inácio Lula da Silva today vowed to pump billions of petrodollars into the war on poverty in the wake of one of the world's biggest oil discoveries this decade.

Speaking on his weekly radio show, president Lula said: "Monday, 31 August, represents a new independence day for Brazil.

"We are talking about a discovery of oil that is almost 6,000m [under the sea], huge reserves that place Brazil among the biggest oil producers in the world."

He claimed that new legislation he is planning would allow profits to be used to "take care of" education and poverty once and for all.

Brazil has been celebrating an unexpected oil boom since November 2007, when state-controlled energy company Petrobras discovered the Tupi oilfield off Brazil's southeast coast.

The discovery of the region led Brazil to suspend the auctioning of all offshore oil blocks pending new legislation, intended to give the government a larger slice of profits. Lula is expected to create a "social fund", designed to channel oil profits into poverty-reduction initiatives, and should hand greater control of "strategic" oilfields to the government.

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