BP in $7bn deal to explore for oil in BrazilOne must realize that supply is more than just the amount of oil extracted each year. It is necessary to look at supply in relationship to demand. If extraction cannot keep up with demand, supply... regardless of amount... is insufficient. Just as efficiency in manufacturing has increased the relative amount of labor resources available [and unemployment has increased], oil supply may actually increase relative to demand [making oil just another low-priced commodity in the future].
price change %
Oil giant BP has announced a deal that will allow it to begin exploring off the coast of Brazil.
It will pay US firm Devon Energy $7bn (£4.7bn) in cash for its Brazilian assets, as well as US deepwater sites in the Gulf of Mexico.
The deal includes 10 exploration "blocks" in Brazil, which has some of the world's largest deepwater oil fields.
BP is also selling Devon half its stake in some Canadian oil fields for $500m.
"Through our entry into Brazil, BP will add a major position in another attractive deepwater basin," said Andy Inglis, BP's head of exploration and production.
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ADDENDUM: It looks as if Peak Oil still has a chance...
Obama completely reverses course: Absolutely no offshore Oil Drilling under his Administration
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