14 DAY TRIAL // Long-term investigations of the Brazilian government finally paid off, when authorities discovered the largest oil deposits in recent years, off the coast of the country. All areas contained within Brazil's 200 miles of sea, and even some that were beyond that limit, were searched for fossil fuels. In 2007, the first estimates regarding the oil quantities in the new deposits were around 30 billion barrels, but now, the Credit Suisse investment bank argues that the real amount is somewhere around 50 million barrels.
The United States tried to dispute Brazil's ownership of the reserves and pushed for the "internationalization" of all oceanic resources, but a United Nations resolution dismissed the proposal as having no solid legal foundation. Brazil was granted full control over the newly-discovered deposits, to use as it saw fit. All international discussions on the matter were also dismissed.
The find could mean a lot to the country, especially given the instable global economy, which could force nations like the U.S. to turn to new suppliers, considering the rapid deteriorating relations the West has with the Middle East. Brazil also moved ahead of countries like Nigeria in terms of potential production and surpassed its neighbor, Venezuela, as well. The United States and Venezuela have had some run-ins recently, so most likely Brazil will be the next logical choice in supplier selection.
Questions regarding how these deposits should be managed are now rising between authorities and, while some push for the creation of a new governmental company, to manage the off-shore reserves only, others emphasize the need for them to be leased to private companies, which would, in turn, strengthen the overall economy of the country. A final decision on the matter has yet to be reached, but a compromise has to be devised soon, if Brazil is to benefit from its resources at all.
Environmentalists argue that the new find will deter the country from its standing position as a critic to global warming. By embracing an oil-powered future, Brazil will no longer be able to blame the U.S., China or its neighbors for not signing international carbon emission reduction treaties. Its long-time goal, that of trying to rely on biofuel as much as possible, could also be abandoned, which means that the environment will have a lot more to suffer than before.