One of several stories at this link.
The little bit I know about this story suggests is it naturally-occurring leakage.
Whether it is or not, two things: a) the Brazilians have learned how to impose huge penalties on Big Oil when given the opportunity (they learned this from US actions in the Gulf); and, b) it's going to be a tad bit more difficult to develop the Brazilian oil fields than anyone thought.
Technologically it's going to be a challenge, and it's clear the political environment is not good. The last thing the Brazilians want to see is an oil slick on their pristine beaches when the Olympic torch is lit. Although the reflection of the light on the oil sheen might rival any one of the seven wonders of the world.
But I sure don't understand the market. Chevron says it will suspend production in one of the biggest oil fields in the world, and is even considering leaving Latin America altogether, and, despite this, Chevron shares open slightly higher, flirting with a new high, after posting all-time highs last week.
This is not an investment site. This is simply an observation.
For those of us who love the Bakken, I can't think of a nicer story on a Monday morning than to find that one of the biggest oil fields in the world is going to be a technological and political minefield.
By the way, for those who have not heard, the Brazilians confiscated the passports of 17 American citizens (?) -- Chevron executives working in Brazil -- and will not allow them free passage back to the states because of the "leak." Hostages? Any different than the Iranians holding American hostages under the Carter administration?
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