Brazil turns down OPEC invitation -- exporting crude is for chumps

[phantom power]

SAO PAULO, Brazil (AP) -- Top Brazilian energy officials say they have declined an invite from Saudi Arabia to join OPEC, explaining that Brazil plans to refine, not export, crude oil from recently discovered deep water reserves.

Brazilian state news agency Agencia Brasil on Monday cited Mines and Energy Minister Edison Lobao, who said the invitation was extended recently.

Paulo Roberto Costa, a high-ranking executive with the state-run Petroleo Brasileiro SA oil company, confirmed that Brazil had turned the offer down because it plans to refine crude at home in order to export costlier petroleum products.

http://edition.cnn.com/2008/WORLD/americas/09/16/brazil.opec.ap/index.html

[NickB79]

1. The ultimate land-export model

Someone high up in Brazil's government knows whats up with regard to oil depletion, methinks.

[phantom power]

3. Perhaps, although their stated goal is to export refined products at higher profit.

In the long run, I would expect their exports to drop regardless. Building refineries is a no-lose proposition. If they decide it's best to keep it for themselves, they've got both crude and refineries.

[Massacure]

2. Wow, first Saudi Arabia and now Brazil --

OPEC has been getting snubbed lately. :D

[GliderGuider]

4. There is less and less reason for OPEC to exist at all.

If we need everyone to pump (and export) as much as they can, then an organization whose main purpose has been to restrain production seems to lack a mission.

[hunter]

5. That's why we crushed Iraq and why we are trying to smother Iran.

Exporting fossil fuels as finished products like diesel fuel, plastics, or fertilizers, or even keeping them on the shelf for your own use, is the smart thing to do, but against the interests of the U.S. corporate war machine.