On the removed of the blocks from the auction: harder for CVRD (NYSE: RIO) to go gas hunting, because it was eyeing those very blocks. The move has also left StatoilHydro (NYSE: STO) scratching and hissing, but it reflects the reality of today's oil patch. National interests are front and center, and I can't imagine that Norway would behave much differently if it stumbled upon a massive deposit in the North Sea tomorrow.
While its future prospects are bright, Petrobras is still suffering the same growing pains as the rest of the energy elephants. Sure, the company ground out modest domestic production gains, which is better than Chevron (NYSE: CVX) could boast, but the beefy Brazilian is also spending a king's ransom in reais to maintain production growth. Lifting costs are up 10% year to date, even after excluding currency appreciation, and investments were up a whopping 35% in the quarter.
As with its Chinese analogue, Petrobras has a strong asset portfolio, and it's fast becoming one of the most important global energy players. Fortunately, the shares haven't attracted the same level of speculative fervor, and I imagine that shareholders will continue to be rewarded by holding on for the ride. I'd advise Fools to keep an eye on those expenses and make sure you're getting your money's worth as Petrobras' production profile evolves.
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