Rio de Janeiro – The cost of oil extraction has tripled over five years in Brazil, having risen from US$ 3.42 per barrel in late 2003 to US$ 10.42 per barrel in late 2008. The conclusion was culled from a survey conducted by the Institute of Applied Economic Research (Ipea) in partnership with the Federal University of Rio de Janeiro (Ufrj), and disclosed in Rio de Janeiro on this Tuesday (1st).
According to the Ipea, the cost increase is a result of issues such as shortage of equipment and services and oil drilling at increasingly complex areas, such as offshore exploration at great depths.
“The oil industry has already mapped out the low-cost fields using the existing technology. These have already been discovered. Thus, the new findings tend to be more expensive. As a rule, the new frontiers of exploration will be dearer,” said Ufrj researcher Helder Queiroz.
He believes that the oil spill underway for over a month in the Gulf of Mexico, off of the United States coast, should contribute for costs to rise even further in coming years.
“There will be a strengthening of prudential measures in production and exploration routines. After the accident, new practices will be established in the industry, in order to increase safety and prevent another disaster,” said Queiroz.
*Translated by Gabriel Pomerancblum
