onewho, Petrobras profits will go way up if they can transport oil more efficiently in pipelines at better quality and with less CUI on the pipes. Longer lasting, or better working, pipelines means a lot less ongoing maintenance expense. Which is a big part of their overhead. It's not just what they charge per barrel which impacts profitability or competitive advantage.
It's the same thing... lowering production costs for both companies. Fatter margins, less maintenance cost per barrel, etc, same thing.
Textiles still require a lot of overhead, but I agree on that note... not nearly as much overhead as oil.
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