Black Gold

Here’s something I wonder about: what is this mayhem in the Middle East going to do to the world’s economic markets? In particular, if trouble breaks out between Israel and Iran over Israel’s tightening encirclement, and the Strait of Hormuz — through which a very significant portion of the world’s seaborne oil must pass — should happen to be choked off, what will that do to oil prices?

If this does happen, it will be a bonanza for oil producers in safer places, in particular the Western Hemisphere. Of particular interest, I think, is the south American firm Petrobras, which controls one of the world’s largest deepwater oil reserves: the Tupi field off the coast of Brazil.

Just saying.

Related content from Sphere


  1. Kevin Kim says

    Western hemisphere, indeed: there’s also Canada, the biggest oil exporter to the US.

    Posted January 28, 2011 at 11:43 pm | Permalink
  2. JK says

    I realize I’m not supposed to type “actress” but ya’ll remember the voice of the actress who conversed with oh, the guy who did “King Tut?”

    Banjo player. Wore an arrow through the head – oh, oh, oh, oh, – oh heck, Steve Martin? Oh, I forget. Anyway. I didn’t know where else to nominate my quote of the decade (imagine a deep booming Darth Vadar [but nice sounding] voice) anyway, Steve Martin and (I think – John Candy) wanted “A F*cking Car.”

    But only Steve(?) and she did any talking – anyway he said, “I want a f*cking car.”

    Now. If I did this right – and ya’ll know the voice of that actress, combine her intonation with Sarah Palin’s,

    “How’s that hopey-changey thing working out for you?”


    Somebody able to eye Russia/the Middle East and give sound investing advice.

    Posted January 29, 2011 at 2:52 am | Permalink
  3. the one eyed man says

    If you like Petrobras – and they do have an enormous amount of oil reserves – then you can buy their stock on the New York Stock Exchange. Ticker is PBR (not to be confused with Pabst Blue Ribbon.)

    I owned some shares and then sold them, because the Brazilian government is majority share owner, and can control the company’s actions for its own domestic purposes. I’m not interested in investing in a company when my biggest partner is a government.

    Posted January 29, 2011 at 1:10 pm | Permalink
  4. Malcolm says

    I should have added that, Peter. (I’ve already ridden some of the company’s little share-price excursions.) There is also an Argentine subsidiary, PZE, which has done gratifyingly well of late.

    Posted January 29, 2011 at 2:04 pm | Permalink