The Rising Influence of Rising Affluence

[DewDiligence]

CLB Says ‘No Thanks’ to Projects in Brazil

[The way Brazil is trying to criminalize Chevron’s behavior (#msg-73644515) in what amounted to a tiny oil spill was not specifically cited by CLB’s executives as a reason for avoiding Brazil, but it certainly doesn’t help.]

http://www.reuters.com/article/2012/03/29/corelabs-brazil-idUSL2E8QS2ZK20120329

›Wed Mar 28, 2012 8:32pm EDT

NEW ORLEANS, March 28 (Reuters) - Core Laboratories, an oilfield services company that specializes in boosting the output of wells, said on Wednesday it was consciously not invested in the red-hot Brazilian energy industry because it was too tough to make money there.

Addressing a noticeable gap in its offices around the world, executives from Amsterdam-based Core Labs said it was no accident their map was missing a dot in Brazil.

"We choose not to be there because we will not get a good return in today's market there," Chief Financial Officer Richard Bergmark told the Howard Weil Energy Conference in New Orleans.

Chief Executive David Demshur explained after the speech that the tax regime and stringent requirements for locally produced content were the main challenges, and expected to see some of his rivals leave the country eventually.

"If I were one of the big four, I wouldn't be there," Demshur said, referring to Schlumberger, Halliburton Co , Baker Hughes Inc and Weatherford.‹