Replies to post #614 on Petroleo Brasileiro S.A. - Petrobras (PBR)

[OilStockReport]

Long term look at PBR

PBR has been a great investment over the years as they are one of the fastest growing oil companies, appreciating over 30% the past five years. I see no reason for this to stop and this is why:

1. PBR plans to invest $174 billion by 2013 to support the largest oil discovery in 30 years, a series of super giant oil and gas fields located in the pre-salt layer of Brazil’s Santo Basin.

2. PBR has both the backing of the Brazilian government who invested over $30 billion, and the Chinese private investors who have pledged over $20 billion to PBR’s discovery.

3. Brazil's government proposed to make PBR the only operator of all new offshore pre-salt oil fields yet to be exploited.

4. PBR expects oil production to increase from 2.4 million barrels a day to around 5.7 million barrels a day by 2020.

5. PBR has an unique advantage to competitors in its technological abilities, with pre-salt rocks resulting in the large discoveries.

6. PBR has long-term views and has been expanding renewable energy programs such as solar, biofuel, and energy.

7.Biofuel production is expected to increase 18% by 2013.

8.PBR has secured billions of dollars in loans from China in return for a guaranteed long-term supply of oil. China’s energy needs are becoming a necessity as they will rapidly grow over the next several years.