Three bits of Brazilian fuel news recently caught the attention of this Fool.
First, we learned that Petrobras
The main issue is an imbalance between lower-quality heavy oil, which Brazil has in abundance, and the lighter, primo stuff that it craves. The company ought to manage net exports for 2008, but the higher price of imports will hit the bottom line. Between better heavy oil refining capacity and further exploitation of lighter offshore oil deposits like this one, solutions to today's imbalance are not beyond the Brazilian bruiser's grasp.
Petrobras had also recently put a bid in for ExxonMobil's
As noted in my recent look at ethanol pipelines, Cosan is extremely wary of Petrobras hogging all the country's distribution infrastructure. So the move into retail distribution, while a low-margin game, guarantees a foothold in important end markets.
Another company seeking a foothold in Brazilian ethanol is BP
Petrobras is an Income Investor selection. This isn't the only tasty yield in the oil field. For more dividend-paying petroleum plays, sample the service free for 30 days.
Fool contributor Toby Shute doesn't have a position in any company mentioned. The Motley Fool has a disclosure policy.