The Petrobras Off-Shore Oil Prospect Not a Slam Dunk -- Implications for Price of Oil, Bakken

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When oil leaking from a faulty well bubbled to the surface of the Atlantic Ocean off the coast of Brazil recently, it caused a stir throughout the country.

There were obvious environmental concerns. And Chevron, the U.S. company operating the well, faced accusations of misleading the government even after immediately accepting responsibility for the spill.

But perhaps the biggest reason for the flurry of activity was that for Brazil, the largest country in Latin America, smoothly functioning wells are essential to its plans for deep-water oil extraction in the coming years. The country is counting on vastly expanding its oil production to boost the momentum it has enjoyed while other nations have struggled through the worldwide economic crisis.