Brazil Strikes Oil

Recently, Brazil, an already oil-rich country, has located 700 million barrels of oil in the ocean surrounding the coast. The oil reserves are located over 400 meters below the oceans surface and because of this great depth, Brazil's progress in drilling to the oil has been slowed. By the year 2011 they should be able to start producing the oil and will then climb the economic ladder not only on South America but also in the rest of the oil producing world. Other countries competing for the richest in oil, like Saudi Arabia, are producing up to 12 million barrels a day while even with this new discovery in Brazil, they still are only estimated to produce about 1 million barrels a day. Since the US and Brazil are partners in trade, this new discovery will hopefully lower the prices at the pumps here in America, and further increase trade to the country. With the new success and profit gained by Brazil, and the constant supply of oil to the US, Brazil will have fat pockets full of American dollars that will in turn be used to buy American goods. If this snowball effect continues, the Brazilian economy will skyrocket and the American economy should follow in suit. This hypothetical situation is one in which both the US and Brazil will benefit but only time and technology will tell if this new discovery of Brazilian oil will actually last and better Brazil's economy. I firmly believe that within the next few years the United States' government will put forth great efforts to better befriend the Brazilian government; all in hopes to better its own economy in the long run.