This Once Promising Oilfield Is Now Looking Pretty Grim

For a couple of years now, energy companies, investors, and Brazilian officials have been waiting on what would come from the Brazilian pre-salt auction. Unfortunately, it didn't turn out the way many had anticipated. Of the 40 companies that were expected to file an intent to place bids, only 11 of them actually did. More importantly, some of the household names in Big Oil were absent from the list. For investors who were looking at Brazilian pre-salt fields as the next great investment opportunity, you may be disappointed. 

So what does this mean for the future of Petrobras (NYSE: PBR  ) ? Tune in to the following video, where fool.com contributor Tyler Crowe explains why this is not a good sign and what could be one glimmering hope for the pre-salt fields. 

Can investors still profit?
As disappointing as this news may be, the biggest determining factor for the pre-salt fields and almost every major oil project today is the price of oil. With prices hovering above $100 a barrel, there are some unique investment opportunities that you should watch for. We've put together a special report called "3 Stocks for $100 Oil" that highlights a trio of companies that are posed to profit in a big way from the current price environment. Let us help you discover the names of these three companies. Simply click here and we'll give you free access to this valuable report. 


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  • Report this Comment On October 01, 2013, at 12:17 AM, ContangoDown wrote:

    I agree with the premise of the article : over the years, we've seen a very volatile range of 30 to 40% peak-to-trough movements in the context of a terrible downtrend. Yes, the current price action appears to be basing but the reality is, we've seen this story time and time again.

    Also, the financial statements continue to show margin and asset erosion and the underlying macro environment of Brazil puts a lot of question marks on PBR and the commodities sector in general.

    The market behavior today (9/30/2013) was too lethargic and the bull case is unconvincing.

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