Everyone complains about the price of gasoline at the pump. The fact is that a gallon of gasoline at the pump in the United States costs less than a gallon of Evian Water – and, most of the oil price is federal and state taxes. The oil companies take risks exploring for oil, building refineries and marketing the stuff. Your state and local governments make more off of the oil industry than does the industry.
Here is some news, good news about new production coming online in Brazil.
HRT shooting for first oil in 2012
HRT goals: First commercial production by year’s end
By News wires
11 May 2012 15:34 GMT
The output will come from fields in Brazil’s Amazon region, believed to contain light grades of crude oil and natural gas, he said according to Reuters.
Efforts to develop these resources were hampered in recent weeks by high water on a stretch of the Amazon River known as the Rio Solimoes, the news wire said. This could potentially delay the company’s drilling activities in the region.
Meanwhile, Rio de Janeiro-based HRT has an estimated 28 billion barrels of oil and natural gas equivalent resources in offshore fields of Namibia in West Africa, said Wagner Peres, chief executive of HRT Americas, which controls the Namibian operations.
The Namibian estimate is prospective and unaudited, and represents so-called “unrisked P-10” resources, he said, adding that HRT plans to start drilling in Namibia in late 2012 or early 2013.
HRT expects to sell stakes in some of its 10 Namibian blocks this year, and has spoken with 10 potential investors about its so-called farm-out plan, Peres said.
Shares of the company rose 4.76% to 482 reais in Sao Paulo trading on Friday, the company’s first gain in four sessions.